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Which of the following is true, concerning NPV? a. When the NPV is positive, the sum of the cash flows from the project equal the
Which of the following is true, concerning NPV?
a. When the NPV is positive, the sum of the cash flows from the project equal the initial investment. | |
b. When the NPV is negative, the sum of the cash flows from the project must also be negative | |
c. The project just recovers the initial investment, discounted by the hurdle rate. | |
d. The IRR is less than the RRR when the NPV is positive, after using the RRR as the discount rate. | |
e. The project recovers the initial investment and earns a return greater than the RRR. |
RRR=Required %
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