CFA Practice Question

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CFA Practice Question

The following statements regarding the NPV rule and the rate of return rule are true except: ______
A. accept a project if its NPV > 0 and reject a project if its NPV < 0.
B. accept a project if its rate of return > 0.
C. accept a project if its rate of return > opportunity cost of capital.

User Contributed Comments 3

User Comment
myanmar accept a project if the irr is above your hurdle rate!
Andrewua it seems that we should accept project if IRR>required rate of return. if just irr>0 it doesn't mean positive NPV...
bvides Rate of return should be more then the REQUIRED one by the firm
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