For capital budgeting projects, which of the following statements is CORRECT? Group of answer choices An extremely high required rate of return should be used to find the NPV of a relatively low risk project. All of these answer choices are correct. If a project’s NPV is less than zero, then its IRR must be less than the required rate of return. If a project’s NPV is greater than zero, then its IRR must be less than zero. The lower the required rate of return, the lower the calculated NPV

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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For capital budgeting projects, which of the following statements is CORRECT?

Group of answer choices
An extremely high required rate of return should be used to find the NPV of a relatively low risk project.
All of these answer choices are correct.
If a project’s NPV is less than zero, then its IRR must be less than the required rate of return.
If a project’s NPV is greater than zero, then its IRR must be less than zero.
The lower the required rate of return, the lower the calculated NPV.
 
 
 
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