CFA Practice Question

There are 233 practice questions for this study session.

CFA Practice Question

A firm should accept a project if the ______, according to the NPV rule.
A. estimated NPV exceeds the project's cost (indicating that the project has more than recaptured its initial cost in terms of net income)
B. NPV is negative but the IRR is positive
C. estimated NPV is positive

User Contributed Comments 2

User Comment
murli A is wrong because the explanation, i.e. recovery of cost in terms of net income as NPV is recovery in terms of cash flow.
pooji good point!!
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