Which of the following statement is true if the Net Present Value (NPV) of a positive?

Question

TuteeHUB · Accepted Answer

The discount rate exceeds the cost of capital.

TuteeHUB · Answer

The IRR must be greater than 0.

TuteeHUB · Answer

The profitability index equals 1

TuteeHUB · Answer

Accepting the project has an indeterminate effect on shareholders

1.	Which of the following statement is true if the Net Present Value (NPV) of a positive?
A.	The IRR must be greater than 0.
B.	The discount rate exceeds the cost of capital.
C.	The profitability index equals 1
D.	Accepting the project has an indeterminate effect on shareholders
Answer» B. The discount rate exceeds the cost of capital.

Discussion