The Decision Rule for Net Present Value Is To

question 50

Multiple Choice

The decision rule for net present value is to:

• A) accept all projects with cash inflows exceeding initial cost.
• B) reject all projects with rates of return exceeding the opportunity cost of capital.
• C) accept all projects with positive net present values.
• D)reject all projects lasting longer than 10 years.

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Definitions:

Final Payment

The last installment paid on a loan, completing the payback of the total borrowed amount and any accrued interest.

Student Loans

Funds lent to students to help cover the cost of post-secondary education, which typically have to be repaid after graduation.

Interest Rates

The percentage of a sum of money charged for its use, typically expressed on an annual basis.

Student Loans

Loans offered to students to help cover the cost of post-secondary education expenses.