An Investment Project for Which the Net Present Value Is

question 50

Multiple Choice

An investment project for which the net present value is £300 would result in which of the following conclusions

• A)The net present value is too small; the project should be rejected.
• B)The investment project promises slightly more than the required rate of return.
• C)The net present value method is not suitable for evaluating this project; the internal rate of return method should be used.
• D)The investment project should only be accepted if net present value is zero; a positive net present value indicates an error(s) in the estimates associated with the analysis of this investment.

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