Net Present Value (NPV)method Has Been Considered as an Alternative

question 54

Multiple Choice

Net present value (NPV) method has been considered as an alternative valuation technique to historical cost for biological assets.The NPV method may be described as:

• A) An accounting method for projecting the revenues and expenses associated with an asset or entity.
• B) An economic concept based on the notion that an asset's value can be determined from its future cash flows.
• C) An accounting concept based on the statement of cash flows to determine the present value of investments.
• D) A finance technique for testing the efficiency of the market by comparing share prices to the discounted cash inflows associated with the asset.
• E) None of the given answers.

---

Definitions:

Economically Disadvantaged

Economically disadvantaged refers to individuals or groups who have less economic resources and opportunities compared to the broader society, often facing challenges in accessing basic needs and services.

Affluent Home

A household characterized by wealth and high social status, with access to abundant resources and luxury.

Mass Schooling

The widespread establishment of compulsory education for children, often associated with industrialized societies.

Feudalism

A social and economic system in Europe during the Middle Ages characterized by a hierarchy of lords and vassals who control land use and provide protection in return for service or labor.