Which of the Following Statements Is Correct

question 58

Multiple Choice

Which of the following statements is correct?

• A) When making an investment decision, take the alternative with the positive NPV. Choosing this alternative is equivalent to receiving its NPV in cash today.
• B) When making an investment decision, take the alternative with the negative NPV. Choosing this alternative is equivalent to receiving its NPV in cash today.
• C) When making an investment decision, take the alternative with the highest NPV. Choosing this alternative is equivalent to receiving its NPV in cash today.
• D) When making an investment decision, take the alternative with the lowest NPV. Choosing this alternative is equivalent to receiving its NPV in cash today.

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Definitions:

Competitions

Events or contests where participants strive to win by surpassing others in performance or skill.

There's

Contraction for "there is," used to indicate the existence of something.

She'll

Contraction of "she will" or "she shall," used to indicate future action.

77-Inch-Long

A measurement indicating something is seventy-seven inches in length.