An investment project for which the net present value is $300 would result in which of the following conclusions? O A. The rate of return of the investment project is greater than the required rate of return. The investment project should only be accepted if net present value is zero; a positive net present value indicates an error in the estimates associated with the analysis of this investment. O B. C. The net present value method is not suitable for evaluating this project; the internal rate of return method should be used. D. The net present value is too small; the project should be rejected.

An investment project for which the net present value is $300 would result in which of the following conclusions? O A. The rate of return of the investment project is greater than the required rate of return. The investment project should only be accepted if net present value is zero; a positive net present value indicates an error in the estimates associated with the analysis of this investment. O B. C. The net present value method is not suitable for evaluating this project; the internal rate of return method should be used. D. The net present value is too small; the project should be rejected.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter12: Capital Budgeting: Decision Criteria

Section: Chapter Questions

Problem 4Q

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