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If the net present value of a project Is positive (non-zero), then the project's internal rate of return will exceed Its required rate of return.
If the net present value of a project Is positive (non-zero), then the project's internal rate of return will exceed Its required rate of return. [A] True [B] False Which one of these methods uses accounting values rather than financial values? [A] AAR [B] IRR [C] NPV An investment should be accepted if the NPV is positive and rejected if It is negative. [A] True [B] False The length of time required for an investment to generate cash flows sufficient to recover the initial cost of the investment is called the: [A] net present value. [B] payback period. [C] internal rate of return. An Investment is acceptable if its average accounting return (AAR): [A] exceeds the target AAR [B] is less than the target AAR. The discount rate that makes the net present value of an investment exactly equal to zero is called the internal rate of return. [A] True [B] False
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