When using the net present value and the internal rate of return to evaluate capital projects:

Related MCQs

• The internal Rate of Return (IRR) criterion for project acceptance, under theoretically infinite funds is: accept all projects which have
• If the internal rate of return (r) is less than the cost of capital,the project should be
• Why are projects with negative net present values (NPVs) unacceptable to a firm?
• Where capital availability is unlimited and the projects are not mutually exclusive, for the same cost of capital, following criterion is used
• Internal rate of return is also identified as the
• If the internal rate of return (IRR) is negative, then the investor
• The Internal Rate of Return is defined as
• If the net present value is greater than zero, then the project is
• If the net present value (NPV) is more than one, then the project may be
• Under Net present value criterion, a project is approved if