Which of the Following Is an Advantage of NPV

question 125

Multiple Choice

Which of the following is an advantage of NPV?

• A) It measures the risk exposure.
• B) It takes into account the time value of investors' money.
• C) It is highly sensitive to the discount rates.
• D) It measures how quickly a firm can breakeven.

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Definitions:

Suffered Losses

Refers to the financial, physical, or emotional damages incurred by an individual or entity, often used in legal contexts to determine compensatory needs.

Contractual Obligations

Duties that a party is bound to perform as per the terms and conditions specified in a contract.

Ground of Intoxication

A legal justification or defense based on the claim that an individual's actions were significantly impaired due to the influence of alcohol or drugs.

Ratifying the Contract

The act of formally confirming or approving an agreement to make it officially valid.