Which of the Following Is True, Concerning NPV

question 41

Multiple Choice

Which of the following is true, concerning NPV?

• A) When the NPV is positive, the sum of the cash flows from the project equal the initial investment.
• B) When the NPV is negative, the sum of the cash flows from the project must also be negative
• C) The project just recovers the initial investment, discounted by the hurdle rate.
• D) The IRR is less than the RRR when the NPV is positive, after using the RRR as the discount rate.
• E) The project recovers the initial investment and earns a return greater than the RRR.

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