When project npv exceeds zero

Question # 00767617 Posted By: Themphes Updated on: 06/25/2020 01:22 PM Due on: 07/02/2020
Subject Finance Topic Finance Tutorials:
Question
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When a project's NPV exceeds zero,

A. the project will always be accepted when payback period method is used.

B. the IRR should be calculated to insure that the project's projected rate of return exceeds the cost of capital.

C. the project should be accepted without any further consideration, assuming we are confident that the cash flows and the cost of capital have been properly estimated.

D. only answers a and c are correct.

E. none of the statements above is correct.

 

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