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
The following information came from the income statement of the Wilkens Company at December 31, 2017: sales revenue $1,800,000; beginning inventory $160,000; ending inventory $240,000; and gross profit $600,000.
Answers (1)
Harrison Co. issued 16-year bonds one year ago at a coupon rate of 6.7 percent. The bonds make semiannual payments. If the YTM on these bonds is 5.3 percent, what is the current dollar price assuming a $1,000 par value?
Answers (1)
Selected information from Rockway, Inc.'s U. S. GAAP financial statements for the year ended December 31, included the following (in $) : 2004 2005 Sales 17,000,000 21,000,000 Cost of Goods Sold 11,000,000 15,000,000 Interest Paid 800,000 1,000,000
Answers (1)
If interest rates go up for a given product, quantity demanded will
Answers (1)
Under the Commerce Clause, Congress regulates mainly interstate Commerce.
Answers (1)
New Questions in Business
Who should you' alert that you are interviewing for jobs? A. Your references B. Other possible employers C. Your classmates D. Your present employer
Answers (1)
Common allocation bases are a. direct labor dollars, direct labor hours, and machine dollars b. machine dollars, direct labor dollars, and direct labor hours c. direct labor dollars, direct labor hours, and machine hours d.
Answers (1)
George and Weezy received $30,200 of Social Security benefits this year ($12,000 for George; $18,200 for Weezy). They also received $5,000 of interest from jointly owned City of Ranburne Bonds and dividend income.
Answers (1)
Which of the following is true regarding the high-tech industry today? a. It generally depends on a pool of low-skilled labor. b. It has led to the increased economic development of previously rural areas. c.
Answers (1)
Presented below are three receivables transactions. Indicate whether these receivables are reported as accounts receivable, notes receivable, or other receivables on a balance sheet. -Sold merchandise on account for $64,000 to a customer.
Answers (1)