Author Question: In using the net present value method, only projects with a zero or positive net present value are ... (Read 32 times)

lbcchick · **on:** Mar 6, 2021

Question 1

In situations where the required rate of return is not constant for each year of the project, it is advantageous to use ________.
◦ the nominal rate-of-return method
◦ the internal rate-of-return method
◦ the net present value method
◦ the projected income method

Question 2

In using the net present value method, only projects with a zero or positive net present value are acceptable because ________.
◦ the return from these projects equals or exceeds the cost of capital
◦ a positive net present value on a particular project guarantees company profitability
◦ the company will be able to pay the necessary payments on any loans secured to finance the project
◦ it results in high payback period

Sweetkitty24130 · **Reply #1 on:** Mar 6, 2021

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