For a Project with Conventional Cash Flows, If NPV Is

Multiple Choice

For a project with conventional cash flows, if NPV is greater than zero, then:

A) The IRR is equal to the firm's required rate of return.
B) The profitability index is greater than 1.
C) The payback period is faster than the firm's required cutoff point.
D) The AAR exceeds the IRR.
E) The project does not pay back on a discounted payback basis.