Question
True or False 1. The net present value of a project will be negative if the required rate of return is greater than the internal
True or False
1. The net present value of a project will be negative if the required rate of return is greater than the internal rate of return.
2. A project with a shorter payback period would always be more profitable than a project with a longer payback period.
3. The profitability index and net present value methods may produce conflictng rankings of projects in preference decisions.
4. The simple rate of return is the same as the internal rate of return.
5. An expected increase in accounts receivable would be considered a cash inflow when determining net present value in a capital budgeting decision.
6. The net present value will always be zero if the internal rate of return is used as the discount rate.
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