Net Present Value

question 27

Multiple Choice

Net present value:

• A)cannot be used when deciding between two mutually exclusive projects.
• B)is easy to explain to non-financial managers and thus is the primary method of analysis used by the lowest levels of management.
• C)is more useful to decision makers than the internal rate of return when comparing different sized projects.
• D)is very similar in its methodology to the average accounting return.
• E)is not as widely used a tool as payback and discounted payback.