Which of the Following Is the Best Expression of the Net

question 129

Multiple Choice

Which of the following is the best expression of the net present value (NPV) acceptance criterion?

• A) positive cash flows total greater than negative flows
• B) number of positive cash flows exceeds negative
• C) payback within one third the life of the project
• D) NPV is greater than or equal to zero

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Definitions:

Partnership Agreement

A legal document that outlines the rights and responsibilities of each partner within a business partnership.

Partnership Capital

Collective ownership interests of all partners in a partnership, typically represented by their capital accounts.

New Partner

A term referring to an individual or entity that joins an existing partnership, bringing in new capital or skills to the business.

Bonus

Extra payment awarded to employees as an incentive or reward beyond their normal compensation.