Which of the following are definite indicators of an accept decision for an independent project with conventional cash flows?
I.positive net present value
II.profitability index greater than zero
III.internal rate of return greater than the required rate
IV.positive internal rate of return
A)I and III only
B)II and IV only
C)I, II, and III only
D)II, III, and IV only
E)I, II, III, and IV

Question

Quizplus · Accepted Answer

A positive net present value (NPV) and an internal rate of return (IRR) greater than the required rate are definite indicators of an accept decision for an independent project with conventional cash flows. A profitability index greater than one (not zero) is also an indicator, and a positive IRR alone is not sufficient without comparison to the required rate.

Which of the Following Are Definite Indicators of an Accept