Why are projects with negative net present values (NPVs) unacceptable to a firm?
A) Returns lower than the cost of capital result in firm failure.
B) Returns with negative NPVs cause an equal profit ratio.
C) Returns with negative NPVs are acceptable to a firm
D) Returns lower than the cost of capital result in higher profit ratios
Correct Answer:
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Q2: The Internal Rate of Return is defined
Q3: Each of the following techniques use discounted
Q4: A manager can presume that the project
Q5: The higher the interest rate
A)The more valuable
Q6: The net present value
A)Is calculated by discounting
Q7: When using the net present value and
Q8: If the internal rate of return (r)
Q9: The basis of trade between countries lies
Q10: One similarity between international trade and inter-regional
Q11: The basis of trade between countries lies
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