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:

Illegal

Activities or actions that are forbidden by law and subject to legal sanctions.

Regulated

Controlled or governed by rules, laws, or standards set by authoritative bodies to ensure compliance and protection of public interests.

Budget

An estimation of income and expenditure for a set period of time, often used for planning and controlling financial resources.

Recruitment Method

Strategies or techniques used by organizations to find and attract candidates for employment.