Multiple Choice
The decision rule for net present value is to:
A) accept all projects with cash inflows exceeding the initial cost.
B) reject all projects with rates of return exceeding the opportunity cost of capital.
C) accept all projects with positive net present values.
D) reject all projects lasting longer than 10 years.
Correct Answer:
Verified
Correct Answer:
Verified
Q53: A project costing $20,000 generates cash inflows
Q54: Soft rationing should never cost the firm
Q55: If a project costs $72,000 and returns
Q56: What is the possible cost of capital
Q57: The payback rule states that a project
Q59: As the discount rate is increased,the NPV
Q60: Which one of the following statements is
Q61: What is the decision rule in the
Q62: If the IRR for a project is
Q63: When calculating IRR with a trial and