To Accept a Capital Project When Using NPV

question 82

Multiple Choice

To accept a capital project when using NPV,

• A) the project NPV should be less than zero.
• B) the project NPV should be greater than zero.
• C) Both a and b
• D) None of the above

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Definitions:

False Cause

Refers to a logical fallacy where it is assumed that because one event follows another, the first event caused the second.

Appeal to Ignorance

A logical fallacy that occurs when one argues that a proposition must be true because it has not been proven false or vice versa.

Non Sequitur

A statement that does not logically follow from the previous argument or statement.

Appeals to Tradition

A logical fallacy where it is argued that something is right or acceptable because it has been traditionally done or believed.