If the NPV Form a Project Is Positive It Must

question 19

Multiple Choice

If the NPV form a project is positive it must be that

• A)the discounted payback period is longer than the useful life of the project.
• B)the internal rate of return is lower than the discount used.
• C)the project is not acceptable on a risk adjusted basis.
• D)this project is preferred to any other mutually exclusive project.
• E)accepting the project increases the value of the firm.

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Definitions:

Supply Price

The minimum price at which a seller is willing to sell a good or service, often determined by the cost of production and market conditions.

Demand Price

The highest price a consumer is willing to pay for a good or service, influenced by personal value perception and financial capability.

Equilibrium Quantity

The amount of products or services available and sought after at the balance price.

Market for Shrimp

The global marketplace where buyers and sellers trade shrimp, influenced by factors like quality, supply, demand, and seasonal trends.