Valerta Company Used the Net Present Value Method and Determined

question 155

Multiple Choice

Valerta Company used the net present value method and determined that project 34 had a zero net present value. What does this tell management about the project?

• A) The return from this project is equal to the cost of capital.
• B) The project guarantees company profitability.
• C) The project's cash inflows will equal its cash outflows.
• D) The project earns the company's desired minimum rate of return.

---

Definitions:

To Secure These Rights

A landmark report from 1947 by the President's Committee on Civil Rights, recommending measures to ensure equal rights and eliminate discrimination.

Black Americans

A term referring to Americans with ancestry from black racial groups of Africa, often used interchangeably with African Americans.

Fair Employment Practices Commissions

Governmental bodies established to monitor and enforce anti-discrimination policies in the workplace, ensuring fair treatment of employees regardless of race, color, religion, sex, or national origin.