A Stand-Alone Project Should Be Undertaken Only If

question 127

Multiple Choice

A stand-alone project should be undertaken only if:

• A)the cost of capital is greater than the project's IRR.
• B)the cost of capital is equal to the project's IRR.
• C)the cost of capital is less than the project's IRR.
• D)the NPV of the project is zero.

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Definitions:

Ordinal Scale

A ranking scale used to measure variable where the order of values is significant, but the difference between values is not uniform.

Rank Order

A method of arranging data points based on their value, from highest to lowest or vice versa.

Measurement

The process or the result of determining the size, length, or amount of something, usually according to a set of standard units.

Nominal Scale

A classification system where numerical or non-numerical data are categorized without a natural order or ranking.