Assume a Project Has Normal Cash Flows

question 54

Multiple Choice

Assume a project has normal cash flows.According to the accept/reject rules,the project should be accepted if the

• A)PI is less than 1.
• B)AAR is less than the required AAR.
• C)IRR exceeds the required return.
• D)payback period is less than the life of the project.
• E)discounted payback period is less than the life of the project.

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Definitions:

Endocrine System

A network of glands in the body that secrete hormones directly into the circulatory system to regulate the body's growth, metabolism, and sexual development and function.

Billion

A numerical value equal to 1,000 million in the American system, and 1,000,000 million in systems that use the long scale.

Adult Brain

The matured human brain, fully developed and capable of complex cognitive, emotional, and behavioral processing.

Cells

The basic structural, functional, and biological units of all living organisms.