If the Net Present Value (NPV) of an Investment Proposal

Multiple Choice

If the net present value (NPV) of an investment proposal is positive, it would indicate that the:

A) PV of after-tax cash outflows exceeds the PV of after-tax cash inflows.
B) Payback period is less than one-half the life of the project.
C) Internal rate of return (IRR) is equal to the discount percentage used in the NPV calculation.
D) PV index would be less than 100%.
E) Internal rate of return (IRR) for this project is greater than the discount rate used in the NPV computation.