The Primary Reason That Company Projects with Positive Net Present

question 10

Multiple Choice

The primary reason that company projects with positive net present values are considered acceptable is that:

• A) they create value for the owners of the firm.
• B) the project's rate of return exceeds the rate of inflation.
• C) they return the initial cash outlay within three years or less.
• D) the required cash inflows exceed the actual cash inflows.
• E) the investment's cost exceeds the present value of the cash inflows.

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Definitions:

Monitoring

The act of observing and checking the progress or quality of (something) over a period of time.

Type A Personality

A personality characterized by high levels of competitiveness, self-imposed stress, impatience, and aggression.

Behaviorists

Psychologists who focus on observable behaviors and the ways in which they're learned.

Personality

The mix of feelings, attitudes, and behaviors that make up a person's response habits.