To Best Understand a Proposed Positive Net Present Value Project

question 62

Multiple Choice

To best understand a proposed positive net present value project, managers should

• A)recheck all calculations.
• B)assume there are no forecast errors.
• C)identify sources of economic rent.
• D)evaluate other similar projects the company has undertaken in the past.

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Definitions:

Advances

Payments or funds given ahead of a normal schedule or before the receipt of goods or completion of services.

Employees

Individuals who are hired by a business to perform tasks in exchange for wages, benefits, or salaries.

Accounts Receivable

Money owed to a business by its customers for goods or services delivered or used but not yet paid for.

Maker

In financial terms, the party that creates or issues a financial instrument, such as a check or promissory note.