Which of the Following Statements Regarding NPV Analysis Is True

question 47

Multiple Choice

Which of the following statements regarding NPV analysis is true?

• A) Uncertainties increase as the dollar value of an investment increases
• B) The discount rate can be calculated with certainty if it is based on the weighted average cost of capital
• C) Managers should generally accept projects with an NPV greater than zero
• D) The timing of incremental revenues and costs is irrelevant in NPV analysis

---

Definitions:

Calories

Units used to measure the amount of energy food provides to the body.

Essential Amino Acids

Amino acids that cannot be synthesized by the body and must be obtained from the diet, crucial for various bodily functions.

Proteins

Organic compounds made of amino acids, essential for the growth, repair, and maintenance of body tissues.

Nutritional Supplements

Products taken orally that contain one or more ingredients (like vitamins or amino acids) intended to supplement one's diet and are not considered conventional food.