The First Step in Determining the NPV Is to _____

question 36

Multiple Choice

The first step in determining the NPV is to _____.

• A)determine the estimated costs and benefits for the life of the project and the products it produces  
• B)determine the discount rate  
• C)calculate the net present value  
• D)determine the cash flow

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Definitions:

Proprietor Form

A business structure owned by a single individual, where the owner and the business are legally the same entity.

Double Taxation

The imposition of taxes on the same income, asset, or financial transaction at two different levels of government, often seen in the taxation of corporate profits and then again when dividends are paid to shareholders.

Limited Liability

An advantage of the corporate form. Stockholder liability for the actions of a company is limited to the value of the stock. That is, a suit against the corporation cannot be made against a stockholder simply because the stockholder is an owner.

Proprietorships

A type of business entity that is owned and operated by a single individual, without any legal distinction between the owner and the business.