Which of the Following Statements Comparing the Use of NPV

question 34

Multiple Choice

Which of the following statements comparing the use of NPV with the use of comparables to value a firm is true?

• A)The use of NPV is always a better method than the use of comparables to determine a firm's value, and comparables should be used only as a last resort.
• B)The use of comparables to value a firm is always a better method because it is both easier and is less subject to estimation error.
• C)Comparables, like NPV, can be used to estimate a true net present value.
• D)The assumptions that must be made when using comparables are much less stringent than the assumptions that must be made when conducting an NPV analysis.

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Definitions:

Mildred Parten

A researcher known for her work on the social development and play stages of preschool children.

Personal Play

Individual engagement in activities for fun, enjoyment, or leisure, without the competitive or social aspects of group play.

Associative Play

A stage of play where children play together, sharing materials and interacting, but their play is not yet cooperative or organized towards a common goal.

Develop Physical Skills

The process of improving physical abilities such as strength, balance, and coordination through practice and training.