Which of the Following Projects Is Rejected on the Basis

question 40

Multiple Choice

Which of the following projects is rejected on the basis of net present value method?

• A) Project A with an NPV of $10,000
• B) Project B with an NPV of $(15,000)
• C) Project C with an NPV of $21,000
• D) Project D with an NPV of $1200

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Definitions:

Longevity

A long duration of life; lasting a long time.

Profit Sharing

A system by which employees receive a share of the profits of a business enterprise.

Pension Plan

A retirement plan that requires an employer to contribute to a pool of funds set aside for an employee's future benefit.

Bereavement Time

Time that an employee can take off when a family member or very close friend dies.