If the NPV for a Project Is Positive It Must

question 105

Multiple Choice

If the NPV for a project is positive it must be that

• A) the discounted payback period is longer than the useful life of the project.
• B) the internal rate of return is lower than the discount used.
• C) the project is not acceptable on a risk adjusted basis.
• D) this project is preferred to any other mutually exclusive project.
• E) accepting the project increases the value of the firm.

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Definitions:

Culture Of Innovation

An organizational environment that encourages and nurtures unconventional thinking, experimentation, and the implementation of new ideas.

Myths

Widely held but false beliefs or stories, often serving as part of an ideology or cultural system.

Metaphors

Figurative language used to describe an object, concept, or experience by comparing it to another, typically unrelated, object, concept, or experience to highlight similarities.

Verification

The process of establishing the truth, accuracy, or validity of something.