The Net Present Value

question 10

Multiple Choice

The net present value:

• A)decreases as the required rate of return increases.
• B)is equal to the initial investment when the internal rate of return is equal to the required return.
• C)method of analysis cannot be applied to mutually exclusive projects.
• D)ignores cash flows that are distant in the future.
• E)is unaffected by the timing of an investment's cash flows.

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Definitions:

Constructors

Special methods in object-oriented programming that are used to initialize new objects.

InputMismatchException

An exception thrown by scanner methods in Java to indicate that the retrieved data does not match the expected type.

Exception-Handling Technique

A programming method used to manage the occurrence of exceptions—events that disrupt the normal flow of program execution.

FileNotFoundException

An exception thrown when an attempt to open the file denoted by a specified pathname has failed.