When Using the Net Present Value Method

question 22

Multiple Choice

When using the net present value method

• A)a net present value of zero indicates that the project would be acceptable.
• B)the expected cash flows from a project must be an equal amount each year.
• C)net cashflows are discounted to their future value.
• D)a proposal is only acceptable when the rate of return on the investment exceeds the required rate of return.

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