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. If NPV is negative, company usually rejects the project. While, if ARR is greater than cost of capital, company accept the project. Last, if Profitability index is greater than 1, accept the project. b. If IRR on investment is zero, its annual cash flows is equal to its required investment. A• FF B• TT C• TF D• FT

. If NPV is negative, company usually rejects the project. While, if ARR is greater than cost of capital, company accept the project. Last, if Profitability index is greater than 1, accept the project. b. If IRR on investment is zero, its annual cash flows is equal to its required investment. A• FF B• TT C• TF D• FT

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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a. If NPV is negative, company usually rejects the project. While, if ARR is greater than cost of capital, company accept the project. Last, if Profitability index is greater than 1, accept the project.

b. If IRR on investment is zero, its annual cash flows is equal to its required investment.

A• FF
B• TT
C• TF
D• FT
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