Which of the following statements is correct?
Posted: Thu Jul 21, 2022 8:56 pm
Which of the following statements is correct?
A. If the NPV of a project is greater than 0, its PI will equal 0
B. If the IRR of a project is 0%, its NPV, using a discount rate, k, greater than 0, will be 0
C. If the PI of a project is less than 1, its NPV should be less than 0
D. If the IRR of a project is greater than the discount rate, k, its PI will be less than 1 and its NPV will be greater than 0
A. If the NPV of a project is greater than 0, its PI will equal 0
B. If the IRR of a project is 0%, its NPV, using a discount rate, k, greater than 0, will be 0
C. If the PI of a project is less than 1, its NPV should be less than 0
D. If the IRR of a project is greater than the discount rate, k, its PI will be less than 1 and its NPV will be greater than 0