When a Project's NPV Exceeds Zero

question 46

Multiple Choice

When a project's NPV exceeds zero,

• A) The project will also be acceptable using payback criteria.
• B) The IRR should be calculated to insure that the project's projected rate of return exceeds the required rate of return.
• C) The project should be accepted without any further consideration,assuming we are confident that the cash flows and the required rate of return have been properly estimated.
• D) Only answers a and c are correct.
• E) None of the above is correct.