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When the present value of the cash inflows is less than the initial cost of...

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Finance

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When the present value of the cash inflows is less than the initial cost of a project, then the project should be: A) accepted because the internal rate of return is positive. B) accepted because the net present value is positive. C) rejected because the internal rate of return is negative. D) rejected because the net present value is negative. C and D above are correct. Which of the following statements is correct? Other things equal, the NPV increases as the cost of capital increases. The cost of capital for Project S should be higher if Project S is considered a low-risk project. Other things equal, the IRR increases as the cost of capital increases. The possibility to accept Project S decreases if the cost of capital increases. Based on the NPV method, the firm should reject Project S

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