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Which one of the following is TRUE? The NPV decision rule says to accept an investment...

Which one of the following is TRUE?

The NPV decision rule says to accept an investment if the NPV is negative.

The IRR decision rule states that a project should be accepted if its IRR exceeds the required return.

The discount rate that causes the net present value of a project to equal zero is called the market rate.

IRR is superior to NPV for choosing between different projects.

Payback ignores the project's cost.

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Answer #1

The following Statement is TRUE

The IRR decision rule states that a project should be accepted if its IRR exceeds the required return.

Remaining Statements are FALSE because (Mistakes have been corrected and highlighted in Green and underline)

The NPV decision rule says to accept an investment if the NPV is Positive

The discount rate that causes the net present value of a project to equal zero is called the IRR

NPV is superior to IRR for choosing between different projects

Payback considers the project's cost

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