Which of the Following Is the Best Expression of the Net

question 102

Multiple Choice

Which of the following is the best expression of the net preset value (NPV) acceptance criterion?

• A)positive cash flows total greater than negative flows
• B)number of positive cash flows exceeds negative
• C)payback within one third the life of the project
• D)NPV is greater than or equal to zero

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Definitions:

Control Chart

A control chart is a statistical tool used to monitor, control, and improve process performance over time by identifying sources of variation.

Process Variability

The natural or inherent variations in a process, reflecting the differences in output or results when the process is repeated under the same conditions.

S Chart

A type of control chart used for monitoring the variability of a process over time, particularly when sample sizes are constant.

Process Capability Index

A statistical measure that quantifies how well a process can produce output within specification limits compared to its natural variability.