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Financial Forensics · End Term · 1 Sept 2024 · May 2024 term · Set QDB1

Question 22: Which statement concerning the net present value (NPV) o…

Question 22

+1 markOne correct option

Which statement concerning the net present value (NPV) of an investment or a financing project is correct?

  1. A

    A financing project should be accepted if, and only if, the NPV is exactly equal to zero.

  2. B

    An investment project should be accepted only if the NPV is equal to the initial cash flow.

  3. C

    Any type of project should be accepted if the NPV is positive and rejected if it is negative.

  4. D

    Any type of project with greater total cash inflows than total cash outflows, should always be accepted.

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Correct answer

  • C

    Any type of project should be accepted if the NPV is positive and rejected if it is negative.

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Question 22 of 41 in the IIT Madras BS Financial Forensics (Financial Forensics) End Term paper sat on 1 Sept 2024, in the May 2024 term (IIT M DEGREE AN EXAM QDB3 01 Sep 2024). It carries 1 mark.

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