An investment project for which the net present value is $300 would result in which of the following conclusions? O A. The rate of return of the investment project is greater than the required rate of return. The investment project should only be accepted if net present value is zero; a positive net present value indicates an error in the estimates associated with the analysis of this investment. O B. C. The net present value method is not suitable for evaluating this project; the internal rate of return method should be used. D. The net present value is too small; the project should be rejected.
An investment project for which the net present value is $300 would result in which of the following conclusions? O A. The rate of return of the investment project is greater than the required rate of return. The investment project should only be accepted if net present value is zero; a positive net present value indicates an error in the estimates associated with the analysis of this investment. O B. C. The net present value method is not suitable for evaluating this project; the internal rate of return method should be used. D. The net present value is too small; the project should be rejected.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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