Using the Net Present Value Method, the Decision Rule for Projects

question 54

Multiple Choice

Using the net present value method, the decision rule for projects when finance is not a restriction is:

• A) select the project with cash flows equal to the initial investment.
• B) select the project with the largest cash inflows.
• C) take on all projects with a positive NPV.
• D) select the project where the cash inflows are greatest in the early years of the project.

---

Definitions:

Petty Offense

A minor legal violation that is less serious than a misdemeanor, often resulting in a small fine.

Building Code Violation

Failure to comply with the set regulations and standards specified in local, state, or federal building codes.

Business Crime

Illegal actions performed by an individual or a group within the context of business activities, often for the purpose of personal or organizational gain.

Petty Offenses

Minor legal violations that typically result in a small fine or minimal punishment.