If the Net Present Value of an Investment Proposal Is

question 3

Multiple Choice

If the net present value of an investment proposal is positive, what conclusions can be drawn? (Identify all correct answers.)

• A) The discount rate used is less than the investment's estimated return.
• B) The investment's estimated return exceeds the minimum return required by the investor.
• C) The discount rate used equals the minimum return required by the investor.
• D) The investment generates cash flows with a present value in excess of its cost.