Multiple Choice
In using the net present value method, only projects with a zero or positive net present value are acceptable because ________.
A) the return from these projects equals or exceeds the cost of capital
B) a positive net present value on a particular project guarantees company profitability
C) the company will be able to pay the necessary payments on any loans secured to finance the project
D) it results in high payback period
Correct Answer:
Verified
Correct Answer:
Verified
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