Which of the Following Statements Regarding the Net Present Value

question 35

Multiple Choice

Which of the following statements regarding the net present value rule and the rate of return rule is false?

• A)Accept a project if NPV > cost of investment.
• B)Accept a project if NPV is positive.
• C)Accept a project if return on investment exceeds the rate of return on an equivalent-risk investment in the financial market.
• D)Reject a project if NPV is negative.

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