Question
A calculated NPV of $15,000 means that the project is expected to create a positive value for the firm and Blank______.
Multiple choice question.
the firm should only accepted if the project has a high payback period
should be accepted if there is no capital rationing constraint
it will never cost the firm more than calculated in the cash flow analysis
Multiple choice question.
the firm should only accepted if the project has a high payback period
should be accepted if there is no capital rationing constraint
it will never cost the firm more than calculated in the cash flow analysis
Answers
GPT-4o mini
The correct answer to fill in the blank is:
**should be accepted if there is no capital rationing constraint.**
This means that if the project's NPV is positive, indicating that it is expected to create value for the firm, it should be accepted as long as the firm does not have any restrictions on capital allocation.
**should be accepted if there is no capital rationing constraint.**
This means that if the project's NPV is positive, indicating that it is expected to create value for the firm, it should be accepted as long as the firm does not have any restrictions on capital allocation.