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:

Corporate Structure

The organizational design and hierarchical arrangement of divisions, roles, and responsibilities within a corporation, determining the manner in which it operates and makes decisions.

Virtual Team

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Coordination And Synchronization

The processes of organizing tasks, activities, and efforts among team members to ensure smooth, efficient, and timely execution.

Repetition

The act or process of doing or saying something again, often for emphasis or to aid in learning.