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When a Project's NPV Exceeds Zero

Question 1

Multiple Choice

When a project's NPV exceeds zero,


A) The project will also be acceptable using payback criteria.
B) The IRR should be calculated to insure that the project's projected rate of return exceeds the required rate of return.
C) The project should be accepted without any further consideration,assuming we are confident that the cash flows and the required rate of return have been properly estimated.
D) Only answers a and c are correct.
E) None of the above is correct.

Correct Answer:

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