There Is no correlation between net present value and Internal rate of return. A project with a positive net present value will have a discount rate that Is greater than the Internal rate of return. None of the statements are true Given several projects with positive net present values, the company should choose the project with the highest net present value. A profect with a positive net present value wil have a discount rate that Is less than the Internal rate of return.

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
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Which of the following statements is true?
Multiple Cholce
There Is no correlation between net present value and Internal rate of return.
A project with a positive net present value will have a discount rate that Is greater than the Internal rate of return.
None of the statements are true
Glven several projects with positive net present values, the company should choose the project with the hlghest net present value.
A project with a positive net present value will have a discount rate that Is less than the Internal rate of return.
Transcribed Image Text:Which of the following statements is true? Multiple Cholce There Is no correlation between net present value and Internal rate of return. A project with a positive net present value will have a discount rate that Is greater than the Internal rate of return. None of the statements are true Glven several projects with positive net present values, the company should choose the project with the hlghest net present value. A project with a positive net present value will have a discount rate that Is less than the Internal rate of return.
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