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.

---

Definitions:

Promissory Note

A financial instrument that contains a written promise by one party to pay another party a definite sum of money either on demand or at a specified future date.

Maturity Date

The date on which a financial obligation must be repaid in full.

Promissory Note

A financial document in which one party promises to pay another party a definite sum of money at a future date or on demand.

Interest Due

The amount of interest payment that is owed but not yet paid by a borrower to a lender at a given point in time.