If the Net Present Value (NPV) of Project a Is

question 40

Multiple Choice

If the net present value (NPV) of project A is + $100, and that of project B is + $60, then the net present value of the combined project is:

• A) +$100
• B) +$60
• C) +$160
• D) None of the above

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Definitions:

Cash Dividends

Payments made by a corporation to its shareholders, usually in the form of cash from its profits.

Net Income

The total earnings of a company after deducting all expenses, taxes, and losses from total revenue, indicative of the company's profitability.

Cash Dividend

Cash rewards issued to investors of a certain class by a firm, as determined by the firm's board based on the company's profits.

Common Shares Outstanding

The number of shares that are currently owned by investors, including restricted shares owned by company officers and insiders.