A conventional project has a payback period of three years and yields a constant annual cash flow. The cost of capital i

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899603
Joined: Mon Aug 02, 2021 8:13 am

A conventional project has a payback period of three years and yields a constant annual cash flow. The cost of capital i

Post by answerhappygod »

A conventional project has a payback period of threeyears and yields a constant annual cash flow. The cost of capitalis 15%.
Which of the following statements is true?
A The Net Present Value (NPV) of the project mustalways be positive
B. The Internal Rate of Return (IRR) of theproject must equal 15%
C. The Net Present Value (NPV) of the project mustalways be negative
D. The average Accounting Rate of Return (ARR) isnever less than zero
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Top
Post Reply

Return to “Archived Questions & Answers”