Net Present Value

question 8

Multiple Choice

Net present value: 

• A) is the best method of analyzing mutually exclusive projects. 
• B) is less useful than the internal rate of return when comparing different-sized projects.
• C) is the easiest method of evaluation for nonfinancial managers. 
• D) cannot be applied when comparing mutually exclusive projects. 
• E) is very similar in its methodology to the average accounting return. 

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Definitions:

Net Exports

The value of a country's total exports minus its total imports, representing the net spending on domestic goods and services by the rest of the world.

National Saving

The total amount of saving in a country, equal to the sum of private saving and public saving (or government surplus).

Domestic Investment

Domestic Investment involves the total spending on capital within a country, which includes the purchase of capital goods and investments in buildings and infrastructure.

Import Quota

A cap placed by the government on how much or how valuable the items being imported into a nation can be.