Which of the following statements are correct when a company is deciding which projects to...
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Finance
Which of the following statements are correct when a company is deciding which projects to choose?
I) If a company has sufficient capital, it should accept all the postive independent NPV projects.
II) If there is only one initial cash outflow at the beginning of the project, a project will have a positive NPV if the IRR of the project is higher than the discount rate.
III) As long as the IRR of the project is higher than the discount rate, the NPV of the project should be greater than 0.
IV) Projects with a positive Profitability Index are guaranteed to have a positive NPV, and the Profitability Index is the ratio of NPV to the cost of the project.
a. Only I and II are correct
b. All of the statements are correct
c. Only I is correct
d. Only I and III are correct
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