Question
True or False? 1. A project costing $1000 and returning $450 annually for three will have a NPV> $0 if the discount rate = 15%
True or False?
1. A project costing $1000 and returning $450 annually for three will have a NPV> $0 if the discount rate = 15%
2. If the discount rate is 15%, the profitability index of the project in question 1 is < 1.
3. The project in question 1 has a payback period < 2.5 years.
4. Yes, it is fair to rank projects from best to worst solely on their respective NPVs.
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Personal Finance
Authors: E. Thomas Garman, Raymond Forgue
9th Edition
0618938737, 978-0618938735
