A conventional project has a payback period of three years and yields a constant annual cash flow. The cost of capital i
Posted: Wed Jul 06, 2022 6:15 am
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
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