Which of the Following Statements Regarding Net Present Value (NPV)is

question 74

Multiple Choice

Which of the following statements regarding Net Present Value (NPV) is INCORRECT?

• A)The NPV represents the value of the project in terms of cash today.
• B)Good projects will have a positive NPV.
• C)The NPV of a project is the difference between the present value of its benefits and the present value of its costs.
• D)When faced with a set of alternatives,choose the one with the lowest NPV in order to minimize the present value of costs.

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Definitions:

Bias

A preconceived opinion or inclination that is not based on reason or actual experience, leading to unfair judgments or decisions.

Supreme Court of Canada

The Supreme Court of Canada is the highest court in Canada, serving as the final court of appeal and deciding on issues of national importance.

Rules of Evidence

The legal principles that govern the admissibility, relevance, and quality of evidence in court proceedings.

Natural Justice

A legal philosophy that focuses on ensuring fairness in judicial, legal, and administrative decisions, emphasizing procedures like the right to a fair hearing and the rule against bias.