When projects net present value exceeds zero

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Reference no: EM131458455

When a project’s Net Present Value exceeds zero,

a. The project will also be acceptable using payback criteria.

b. The IRR should be calculated to insure that the project’s projected rate of return exceeds the cost of capital.

c. The project should be accepted without any further consideration, assuming we are confident that the cash flows and the cost of capital are properly estimated.

d. Only answers a and c are correct. e. None of the statements above is correct.

Reference no: EM131458455

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