Which of the Following Is Not True of a NPV

question 17

Multiple Choice

Which of the following is not true of a NPV calculation and analysis?

• A) NPV analyzes present values of the initial expenditure along with the likely future revenue and expenditure streams
• B) NPV is too difficult to include in most TCO analyses
• C) NPV greater than zero suggests accepting the investment
• D) NPV less than 0 suggests rejecting the investment
• E) NPV = 0 is the point of indifference

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Definitions:

Pay Equity

A principle that emphasizes equal salary for jobs of equal value within an organization, aiming to eliminate discrimination based on gender, race, or other unrelated job performance factors.

Executive Bonuses

Additional compensation given to executives, often tied to performance metrics, company profitability, or achievement of specific targets.

High-risk Executive Behaviours

Actions or decisions by top management that carry a significant chance of negative consequences for the organization or its stakeholders.

Ethical

Pertaining to or dealing with morals, the principles of morality pertaining to right and wrong conduct.