Question
If a project's expected rate of return exceeds its opportunity cost of capital, one would expect: Select one: A. the profitability index to be negative.
If a project's expected rate of return exceeds its opportunity cost of capital, one would expect:
Select one:
A. the profitability index to be negative.
B. the NPV to be zero.
C. the opportunity cost of capital to be too low.
D. the project to have a positive NPV.
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
15th edition
1337671002, 978-1337395250
