Which One of the Following Statements Concerning Net Present Value

question 76

Multiple Choice

Which one of the following statements concerning net present value (NPV) is correct?

• A)An investment should be accepted if, and only if, the NPV is exactly equal to zero.
• B)An investment should be accepted only if the NPV is equal to the initial cash flow.
• C)An investment should be accepted if the NPV is positive and rejected if it is negative.
• D)An investment with greater cash inflows than cash outflows, regardless of when the cash
• flows occur, will always have a positive NPV and therefore should always be accepted.
• E)Any project that has positive cash flows for every time period after the initial investment
• Should be accepted.

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Definitions:

Flat Organizations

Organizational structures with few or no levels of middle management between staff and executives, promoting autonomy and faster decision-making.

Teamwork

Teamwork involves a group of people working collaboratively towards a common goal, leveraging diverse skills and perspectives.

Bureaucratic

Pertains to a system or manner of government or organization that is characterized by fixed and complex rules, a hierarchy of authority, and a focus on procedure over people.

Turnaround Strategy

A plan implemented by a company facing difficulties, aiming to recover its profitability and ensure long-term survival.