Net Present Value Is the Only Method of Investment Appraisal

question 41

Multiple Choice

Net Present Value is the only method of investment appraisal that

• A) Considers the time value of money
• B) Uses all the relevant cash flows in the analysis
• C) Deals with cash outflows exceeding inflows after the start of the project
• D) Uses the company's cost of capital to establish a discount rate
• E) Considers the investment's direct impact on shareholder's wealth

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