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If the Net Present Value (NPV) of a Project Is

Question 2

Multiple Choice

If the net present value (NPV) of a project is positive,:


A) the project's discounted payback period is longer than the useful life of the project.
B) the internal rate of return is lower than the firm's required rate of return.
C) the project is not acceptable.
D) the project's discounted payback period is less than its traditional payback period.
E) accepting the project will increase the value of the firm.

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