Question 25 (3.5 points) Saved Assuming a specific single project with normal cash flows and a cost of capital of 10%, which of the following statements will ALWAYS be true: (Note: more than one of the following statements may be true; you must record ALL of the statements that are true to receive any credit. That is, if statements a, b and c are ALWAYS true, you must record, A, B, C as the correct answers to this problem to receive any ctedit. Any other letter or combination of letters will be marked wrong). If NPV > 0, then Profitability Index > 0. If NPV > 0, then a simple sum of the cash inflows of the project will always be greater than the cost of the project (i.e, the year 0 cash flow). If NPV > 0, then Payback Period > 0. If NPV > O at the stated cost of capital (i.e., 10%), then NPV will also be > 0 at a cost of capital of 12%. If NPV > O, then IRR > 0. Page 25 of 34 Previous Page Next Page Show All X