The decision rule for net present value is to

Accept all projects with cash inflows exceeding the initial cost

Accept all projects with positive net present values

Reject all projects lasting longer than 10 years

Reject all projects with rates of return exceeding the opportunity cost of capital

The modified internal rate of return can be used to correct for

Undefined payback periods

Borrowing projects

Negative NPV calculations

Multiple internal rates of return

When investment decisions are made based on the payback rule they may be biased toward rejecting projects that

That have negative net present values

With long lives

With short lives

With late cash flows

One method that can be used to increase net present value for a project is to decrease the

Number of IRR projects

Time until the receipt of cash flows

Probability index

Projects payback period

When managers cannot determine whether to invest now or wait until costs decrease later should follow the rule

Postpone until the opportunity cost reaches its lowest

Invest now to maximize net present value

Invest at the date that provides the highest NPV today

Postpone until costs reach their lowest level