Which of the Following Is True of NPV Profile

question 63

Multiple Choice

Which of the following is true of NPV profile?

• A) It is used for evaluating and comparing independent projects when conflicting ranking exists.
• B) It is a graph that illustrates a project's IRR against various values of NPV.
• C) It shows an inverse relationship between a project's IRR and NPV.
• D) It charts the net present value of a project as a function of the cost of capital.

Illustrate the relationship between present value and future value through graphical representation.

Understand and calculate inventory turnover in a manufacturing plant.

Analyze the financial implications of operational decisions on company profit.

Apply basic mathematical concepts to solve business related problems.

---

Definitions:

Large Denomination

Notes or coins of high value in circulation within the monetary system.

Time Deposits

Banking term for deposit accounts that have a fixed term and typically offer higher interest rates than regular savings accounts.

M2

M2 refers to a measure of the money supply that includes cash, checking deposits, and easily convertible near money.

M3

A measure of the money supply that includes M2 plus large time deposits, institutional money market funds, and other large liquid assets.