Net Present Value

question 1

Multiple Choice

Net present value

• A) Divides investment by average cash inflow to determine if a capital expenditure should be made
• B) Discounts and totals cash inflows and subtracts the investment to determine if a capital expenditure should be
• C) Discounts and totals cash inflows and divides by the investment to determine if a capital expenditure should be made
• D) Calculates the discount rate that equates the present value of the cash inflows with the initial investment to determine if a capital expenditure should be made

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Definitions:

Thymine

A pyrimidine nucleobase found in DNA, pairing with adenine through two hydrogen bonds, crucial for DNA stability and genetic information.

Nucleic Acid

A molecule made up of nucleotides that carry genetic information or form structures within the cell, examples include DNA and RNA.

Complementary Strand

In genetics, this refers to a sequence of DNA or RNA that is made to pair with a specific sequence of nucleotides through base pairing.

DNA

DNA, or deoxyribonucleic acid, is a molecule that carries the genetic instructions used in the growth, development, functioning, and reproduction of all known living organisms and many viruses.