In Computing the Net Present Value of a Project, a Manager

question 54

Multiple Choice

In computing the net present value of a project, a manager uses a cost of capital number that is too low. This error causes the manager to compute a net present value that:

• A)is lower that what it in fact should be.
• B)is higher that what it in fact should be.
• C)has no effect on the net present value computation.
• D)is undefined in mathematical terms.

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Definitions:

Cash Deposit Slip

A document prepared by a depositor when making a deposit into a bank account, enumerating the cash and/or checks being deposited.

Accounts Payable Clerk

An Accounts Payable Clerk is responsible for managing the company's accounts payable records, including processing invoices, verifying financial data, and ensuring timely payments to vendors.

Petty Cash

A small amount of cash on hand that is used for paying small expenses in an organization.

Cash Short And Over

An accounting term that represents the discrepancies between the recorded amount of cash and the actual amount of cash available, indicating either a surplus or a shortfall.