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.

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Definitions:

Statute of Frauds

A legal concept that requires certain types of contracts to be in writing and signed by all parties involved to be enforceable.

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An executive responsible for overseeing the daily operations and overall management of a business or organization.

Statute of Frauds

A legal principle that requires certain types of contracts, including those for the sale of land or goods over a certain value, to be in writing to be enforceable.

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A legal right or claim on property, entitling the holder to a specific interest or portion of the property such as ownership, use, or occupancy.