Which of the following statements is CORRECT? Assume that the project being considered has normal cash flows, with one outflow followed by a series of inflows.
A. The higher the cost of capital used to calculate the NPV, the lower the calculated NPV will be.
B. If a project's NPV is greater than zero, then its IRR must be less than the cost of capital.
C. If a project's NPV is greater than zero, then its IRR must be less than zero.
D. The NPVs of relatively risky projects should be found using relatively low costs of capital.
E. A project's NPV is generally found by compounding the cash inflows at the cost of capital to find the terminal value (TV), then discounting the TV at the IRR to find its PV.
Answer: A
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Figure 4-5According to Figure 4-5 above, B defines what level in the Maslow hierarchy of needs?
A. physiological B. social C. self-actualization D. personal E. safety
Underapplied overhead occurs when the balance in the Manufacturing Overhead Control account is:
A. less than the balance in the Applied Manufacturing Overhead account. B. equal to the balance in the Applied Manufacturing Overhead account. C. less than the balance in the Finished Goods Inventory account. D. greater than the balance in the Applied Manufacturing Overhead account.
A large difference between actual and planned results is feedback that the system is providing adequate control
Indicate whether the statement is true or false