Which of the Following Statements Regarding Net Present Value (NPV)is

question 74

Multiple Choice

Which of the following statements regarding Net Present Value (NPV) is INCORRECT?

• A)The NPV represents the value of the project in terms of cash today.
• B)Good projects will have a positive NPV.
• C)The NPV of a project is the difference between the present value of its benefits and the present value of its costs.
• D)When faced with a set of alternatives,choose the one with the lowest NPV in order to minimize the present value of costs.

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Definitions:

Primitive Side

The aspect of a person's psyche that contains the basic impulses, desires, and instincts inherited from early ancestors.

Biological Drives

Innate impulses that direct or motivate behaviors necessary for survival, such as hunger, thirst, and reproduction.

Personality

An individual's characteristic patterns of thought, emotion, and behavior, together with the psychological mechanisms behind those patterns.

Temper Tantrums

Emotional outbursts, typically seen in children, that are characterized by yelling, crying, and sometimes physical behaviors like kicking or hitting.