For a Capital Project to Be Accepted,the ________ Should Exceed

question 71

Multiple Choice

For a capital project to be accepted,the ________ should exceed the ________.

• A)IRR; hurdle rate.
• B)NPV; hurdle rate
• C)MIRR; IRR
• D)MIRR; NPV

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Definitions:

Bond Sinking Fund

A separate fund established by an issuer of bonds to repay principal on the debt over time, ensuring the bond's eventual maturity is financially manageable.

Early Retirement

Opting to retire before the conventional retirement age, often with specific eligibility criteria.

Gain or Loss

Represents the difference between the sale price and the purchase price of an asset, where it is a gain if the sale price is higher and a loss if the purchase price is higher.

Redeemed

The process of repaying or buying back securities or bonds before their maturity date.