Multiple Choice
As long as the NPV of a project declines smoothly with increases in the discount rate,the project is acceptable if its:
A) internal rate of return is positive.
B) payback period is greater than one.
C) rate of return exceeds the cost of capital.
D) cash inflows equals the initial cost
Correct Answer:

Verified
Correct Answer:
Verified
Q21: If a project's expected rate of return
Q33: As the opportunity cost of capital decreases,the
Q43: When mutually exclusive projects have different lives,
Q44: The "gold standard" of investment criteria refers
Q45: Evaluate the following project using an IRR
Q46: What is the IRR of a project
Q47: Spending $40,000 on a new truck would
Q48: Discuss reasons why a firm may want
Q59: As the discount rate is increased,the NPV
Q99: Projects with an NPV of zero decrease