The Net Present Value Method Is a Better Method of Evaluation

question 81

Multiple Choice

The net present value method is a better method of evaluation than the internal rate of return method because

• A) the NPV method discounts cash flows at the internal rate of return.
• B) the NPV method is a more liberal method of analysis.
• C) the NPV method discounts cash flows at the firm's more conservative cost of capital.
• D) none of the other answers are correct

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Definitions:

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Forebrain

The forebrain is the largest part of the brain, responsible for a variety of functions including motor control, emotion, reasoning, and learning.

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A region of the brain that plays an important role in motor control, and also in some cognitive functions like attention and language.

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The outer layer of the cerebrum, playing a key role in memory, attention, perception, cognition, awareness, thought, language, and consciousness.