Question
Which of the following statements is correct? a.If NPV = 0, then PI = 1. b.Generally, an independent project not acceptable by the NPV method
Which of the following statements is correct?
a.If NPV = 0, then PI = 1.
b.Generally, an independent project not acceptable by the NPV method will be acceptable by the IRR method.
c.Assuming a project has conventional cash flows, the NPV will be positive if the IRR is less than the cost of capital.
d.If IRR = k (the cost of capital), then NPV = 1.
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Principles of Managerial Finance
Authors: Lawrence J. Gitman, Chad J. Zutter, Wajeeh Elali, Amer Al Roubaix
Arab World Edition
1408271583, 978-1408271582
