Which of the Following Is a Key Advantage of the Net

question 43

Multiple Choice

Which of the following is a key advantage of the Net Present Value metric for evaluating an IT initiative?

• A)It relates estimates using accrual accounting.
• B)It is easy to calculate.
• C)It considers the time value of money.
• D)It is sensitive to the discount rate applied.

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Definitions:

Professional Management

The process of overseeing and handling investment portfolios by experts or specialized firms to achieve specified investment objectives.

Investment Companies

Firms that pool funds from individuals to collectively invest in stocks, bonds, and other securities, offering diversification and professional management.

NAV

Net Asset Value, the total value of a fund's assets minus its liabilities, often used to determine the price of shares in a mutual fund or ETF.

Year-End Assets

The total value of all assets held by an entity at the end of a financial year.