Question
Question 9 If the NPV (Net Present Value) of a project is positive, then the project's IRR (Internal Rate of Return) ____________ the required rate
Question 9 If the NPV (Net Present Value) of a project is positive, then the project's IRR (Internal Rate of Return) ____________ the required rate of return/cost of capital of the project.
I. cannot be determined without actual cash flows
II. could be greater than or less than
III. must be greater than
IV. none of the above.
V. must be less than
Question 7
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For the net present value (NPV) criteria, a project is acceptable if NPV is __________, while for the profitability index a project is acceptable if PI is __________.
I. less than zero, greater than the required return
II. greater than zero, greater than one
III. none of the above
IV. greater than zero, less than one
V. greater than one, greater than zero
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