If the net present value is positive,
1) the internal rate of return exceeds the firm's cost of capital
2) the internal rate of return is less than the firm's cost of capital
3) the present value of cash inflows exceeds the present cost of an investment
4) the present value of cash inflows is less than the present cost of an investment
A) 1 and 3
B) 1 and 4
C) 2 and 3
D) 2 and 4
Correct Answer:
Verified
Q36: If the probability of an investment's cash
Q37: For an investment to diversify a portfolio,
Q38: A higher cost of capital reduces an
Q39: The internal rate of return will be
Q40: The coefficient of variation divides an investment's
Q42: If the risk-adjusted net present value is
Q43: If the internal rates of return of
Q44: A stand-alone perspective for capital budgeting suggests
A)
Q45: NPV may be preferred to IRR because
A)
Q46: A firm should not make an investment
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents