Which of the following best describes the Net Present Value rule?
A) When choosing among any list of investment opportunities where resources are limited, always choose those projects with the highest net present value (NPV).
B) Take any investment opportunity where the net present value (NPV) is not negative; turn down any opportunity when it is negative.
C) If the difference between the present cost of an investment and the present value (PV) of its benefits after a fixed number of years is positive the investment should be taken, otherwise it should be rejected.
D) Take any investment opportunity where the net present value (NPV) exceeds the opportunity cost of capital; turn down any opportunity where the cost of capital exceeds the net present value (NPV)
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Which of the following best describes the Net Present Value rule? A) When choosing among any list of investment opportunities where ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Use what you have learned about the time value of money to analyze each of the following decisions: Decision #1: Which set of Cash Flows is worth more now? Assume that your grandmother wants to give you generous gift.
Answers (1)
Frank Crimmins was driving on Interstate 85 in eastern Alabama when he noticed he was running low on gas. Frank was relieved when he found a gas station open at the next exit just 2 miles ahead.
Answers (1)
Which is an advantage corporations enjoy over partnerships? Question 22 options: Corporations involve less paperwork and fewer management fees. The taxes paid by a corporation are generally much smaller.
Answers (1)
What kind of customer would want collision coverage for his or her auto incurance?
Answers (1)
The North's control of railroads gave it an advantage during the Civil War because it could use trains to form blockades. move more men and supplies. export more cotton to Europe. enlist railroad workers in the military.
Answers (1)
New Questions in Business
A "universal product code" (upc) : 1. was required by the federal fair packaging and labeling act. 2. slows down the retail checkout process. 3. all of the above are true. 4. involves placing the price per ounce on or near the product. 5.
Answers (1)
On September 15, 2021, Oliver's Mortuary received a $3,600, nine-month note bearing interest at an annual rate of 14% from the estate of Jay Hendrix for services rendered. Oliver's has a December 31 year-end.
Answers (1)
The fixed-order quantity inventory model is more appropriate for important items such as critical repair parts because there is closer monitoring and therefore quicker response to a potential stockout. a) trueb) false
Answers (1)
Requiring segregation of duties in a business eliminates the need for the work of one employee to serve as a check on the work of other employees.
Answers (1)
At December 31, 2018, the following information was available for Deen Company: ending inventory $22,600; beginning inventory $21,400; cost of goods sold $171,000; and sales revenue $430,000.
Answers (1)