Multiple Choice
All of the following are sufficient indications to accept a project EXCEPT (assume that there is no capital rationing constraint,and no consideration is given to payback as a decision tool)
A) the net present value of an independent project is positive.
B) the profitability index of an independent project exceeds one.
C) the IRR of a mutually exclusive project exceeds the required rate of return.
D) the NPV of a mutually exclusive project is positive and exceeds that of all other projects.
Correct Answer:
Verified
Correct Answer:
Verified
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