When Using the Net- Present- Value Method, If the Sum

question 51

Multiple Choice

When using the net- present- value method, if the sum of the present values of the cash flows is positive, then:

• A) the decision maker would be indifferent between accepting and rejecting the project
• B) the present value of the cash outflows exceeds the present value of the cash inflows
• C) the project should be rejected
• D) the project is desirable

---

Definitions:

Equal Rights Amendment

A proposed amendment to the United States Constitution aimed at guaranteeing equal legal rights for all American citizens, regardless of sex.

Legislation

Laws or legal statutes that have been enacted by a governing body, such as a parliament or congress.

Social Equality

The situation where members of a society enjoy equality in aspects such as civil rights, freedom of speech, rights to own property, and the availability of services and social goods on an equal basis.

Washing Machine

A household appliance designed for washing clothing and textiles using water and detergent.