If the Net Present Value of a Project Is Positive

question 38

Multiple Choice

If the net present value of a project is positive (non-zero) ,then the project's:

• A)PI will be less than 1.
• B)internal rate of return will exceed its required rate of return.
• C)costs exceed its benefits.
• D)discounted payback period will exceed the life of the project.
• E)payback period must equal the life of the project.

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Definitions:

Permanent/Temporary

Categories representing either enduring, long-term attributes or conditions, or those that are short-lived and transient.

Post-closing Trial Balance

A list of all accounts and their balances after closing entries have been made, ensuring that debits equal credits.

Accounts Receivable

Money owed to a company by its customers for goods or services delivered on credit.

Revenue

The total amount of income generated by the sale of goods or services related to a company's primary operations.