Question
For a project that has conventional cash flows, which of these statements is true? Multiple Choice Projects with conventional cash flows have multiple internal rates
For a project that has conventional cash flows, which of these statements is true?
Multiple Choice
Projects with conventional cash flows have multiple internal rates of return.
The profitability index will be greater than 1.0 when the net present value is postive.
If the IRR is greater than the required return, the profitability index will be less than 1.0.
When the internal rate of return is greater than the required return, the net present value is negative.
If two projects are mutually exclusive, you should select the project with the shortest payback period.
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