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 equal the initial cost.
Correct Answer:
Verified
Correct Answer:
Verified
Q61: What is the decision rule in the
Q62: If the IRR for a project is
Q63: When calculating IRR with a trial and
Q64: Selecting the project(s)with the highest NPV(s)is not
Q65: For most managers,discounted cash-flow analysis is in
Q67: The profitability index selects projects based on
Q68: Occasionally projects may have positive initial cash
Q69: The modified internal rate of return can
Q70: According to the NPV rule,all projects should
Q71: A currently used machine costs $10,000 annually