CFA Practice Question

There are 233 practice questions for this study session.

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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