The Decision You Should Take Regarding This Project Is

question 68

Multiple Choice

The decision you should take regarding this project is:

• A)reject the project since the NPV is negative.
• B)reject the project since the NPV is positive.
• C)accept the project since the IRR < 20%.
• D)accept the project since the IRR > 20%.

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Definitions:

Market

A place or virtual space where buyers and sellers come together to trade goods, services, or financial instruments, determining the prices through supply and demand.

External Cost

Costs of a transaction that affect people who are not part of the transaction.

Private Value

The estimate of worth that an individual or company assigns to an asset, good, or service, reflecting personal assessments rather than market-driven prices.

Social Cost

The total cost to society, including both private and external costs, of producing a good or service.