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Which One of the Following Statements Is Correct

Question 206

Multiple Choice

Which one of the following statements is correct?


A) A negative net present value indicates that a project is acceptable.
B) A profitability index that is less than 1.0 indicates that a project is acceptable.
C) A project with a net present value of zero is earning exactly the required rate of return.
D) When the internal rate of return is less than the required rate, the project should be accepted.
E) If the accounting rate of return exceeds the required discount rate, the project should be accepted.

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