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A project with an IRR of 15% and a cost of capital of 10% wi…

A project with an IRR of 15% and a cost of capital of 10% will always have a positive NPV. 

Published March 29, 2026
Categorized as Uncategorized

A project with a profitability index of 0.95 has a positive…

A project with a profitability index of 0.95 has a positive NPV. 

Published March 29, 2026
Categorized as Uncategorized

The Internal Rate of Return (IRR) rule recommends accepting…

The Internal Rate of Return (IRR) rule recommends accepting a project when IRR is less than the cost of capital.

Published March 29, 2026
Categorized as Uncategorized

If all future cash flows are positive and the initial invest…

If all future cash flows are positive and the initial investment is negative, there is only one IRR. 

Published March 29, 2026
Categorized as Uncategorized

The project with the highest profitability index should alwa…

The project with the highest profitability index should always be selected, regardless of other constraints. 

Published March 29, 2026
Categorized as Uncategorized

When choosing between mutually exclusive projects, the proje…

When choosing between mutually exclusive projects, the project with the highest NPV should be selected. 

Published March 29, 2026
Categorized as Uncategorized

The IRR rule is appropriate for comparing mutually exclusive…

The IRR rule is appropriate for comparing mutually exclusive projects that differ significantly in size or investment amount.

Published March 29, 2026
Categorized as Uncategorized

An NPV can be negative even when the IRR is greater than the…

An NPV can be negative even when the IRR is greater than the cost of capital. 

Published March 29, 2026
Categorized as Uncategorized

A project with positive cash flows and requiring no initial …

A project with positive cash flows and requiring no initial investment will have a positive NPV.  

Published March 29, 2026
Categorized as Uncategorized

The NPV rule should be followed when it conflicts with other…

The NPV rule should be followed when it conflicts with other investment decision rules. 

Published March 29, 2026
Categorized as Uncategorized

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