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If the Net Present Value Is Positive, the Present Value

question 58

Multiple Choice

If the net present value is positive, the present value of the investment's stream of future operating profits is ________ than the present value of its cost and profit- maximizing managers_______ make the investment.


Definitions:

Direct Method

A cost allocation method used in cost accounting that directly assigns all direct costs to specific cost objects, such as products or services, without using any allocation for indirect costs.

Service Department

A department within a company that provides essential support services to the production and sales departments, not directly generating revenue.

Assembly Department

A section within a manufacturing facility where components are assembled into final products.

Employee Hours

The total number of hours worked by employees, often used for tracking labor costs, productivity, or workforce planning.

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