Which of the Following Best Describes the Net Present Value

question 23

Multiple Choice

Which of the following best describes the Net Present Value rule?

• A) When choosing among any list of investment opportunities where resources are limited, always choose those projects with the highest net present value (NPV).
• B) Take any investment opportunity where the net present value (NPV) is not negative; turn down any opportunity when it is negative.
• C) Take any investment opportunity where the net present value (NPV) exceeds the opportunity cost of capital; turn down any opportunity where the cost of capital exceeds the net present value (NPV)
• D) If the difference between the present cost of an investment and the present value (PV) of its benefits after a fixed number of years is positive, the investment should be taken; otherwise it should be rejected.

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Definitions:

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The release of harmful contaminants into the environment as a result of manufacturing, processing, and other industrial activities, affecting air, water, and soil quality.

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Was a steel production company located in Sydney, Nova Scotia, known for its historical significance in the region's industrial development.