Which of the following statements are correct? I. A positive net present value signals an accept...
Which of the following statements are correct?
I. A positive net present value signals an accept decision.
II. Projects should be accepted when the profitability index is greater than 1.
III. A payback period that is less than the required period signals an accept decision.
IV. When the internal rate of return exceeds the required return, a project should be accepted.
Homework Answers
Ans I, II, III, IV
Correct statements are:
I. A positive net present value signals an accept decision.
II. Projects should be accepted when the profitability index is greater than 1.
III. A payback period that is less than the required period signals an accept decision.
IV. When the internal rate of return exceeds the required return, a project should be accepted.
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Show all work and highlight final answer. Do not answer the
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