What Is the Quantitative Decision Rule for the Net Present

question 102

Multiple Choice

What is the quantitative decision rule for the net present value method?

• A) Accept investments whose return on investment exceeds the accounting rate of return.
• B) Accept investments whose weighted average cost of capital exceeds the return on investment.
• C) Accept investments whose required rate of return exceeds the internal rate of return.
• D) Accept investments with a positive net present value.

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