When Using the Net?present?value Method, If the Sum of the Present

question 60

Multiple Choice

When using the net?present?value method, if the sum of the present values of the cash flows is positive, then the _____.

• A)project should be rejected
• B)project is desirable
• C)present value of the cash outflows exceeds the present value of the cash inflows
• D)decision maker would be indifferent between accepting and rejecting the project

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Definitions:

New Employment

The phase of starting to work in a new job position or with a new employer.

Market Basket Measure

A benchmark of income poverty that estimates the cost of a specific set of goods and services representing a modest, basic standard of living.

Low-Income Cut-Off

A statistical threshold under which a family unit would be considered to be living in relative poverty, defined by their income.

Low-Income Measure

A statistical threshold used to identify individuals or families that earn significantly less than the average in their society, often used to target social support.