Which of the Following Statements Is Correct

question 45

Multiple Choice

Which of the following statements is correct?

• A)You should accept project A since its IRR > 15%.
• B)You should reject project B since its NPV > 0.
• C)Your should accept project A since its NPV < 0.
• D)You should accept project B since its IRR < 15%.

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Definitions:

Opportunity Cost

The loss of potential gain from other alternatives when one alternative is chosen.

Rival Nation

A country that competes with another, often in economic, military, or technological aspects.

Mercantilism

An economic theory and practice that promotes government regulation of the nation's economy to increase state power at the expense of rival national powers.

Trade Surplus

A situation where a country's exports exceed its imports over a given period.