When a project's net present value exceeds zero, then: a. the project should be accepted b. the project will be acceptable using the payback period method c. the IRR should be calculated to ensure that the project's IRR is less than the cost of capital d. both a and c are true
A firm is evaluating a proposal which has an initial investment of $50,000 and has cash flows of $15,000 per year for five years. If the firm's required return or cost of capital is 15%, should it accept the project using
c. If a project has a negative NPV, its IRR will always be less than the cost of capital. d. There is sometimes a conflict between NPV and IRR in the case of mutually exclusive projects. e. all of the above are correct E. all of the above are correct 66.