Sunday, February 10, 2013

In using the net present value method, only projects with a zero or positive net present value are acceptable because

ACCOUNTING

Multiple Choice

In using the net present value method, only projects with a zero or positive net present value are acceptable because

a. the return from these projects equals or exceeds the cost of capital.

b. a positive net present value on a particular project guarantees company profitability.

c. the company will be able to pay the necessary payments on any loans secured to finance the project.

d. of both (a) and (b).

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