Which of the Following Is Not a Criterion That Is

question 63

Multiple Choice

Which of the following is not a criterion that is used to determine whether a project is acceptable under the net present value method?

• A) If the net present value is equal to zero
• B) If the net present value is greater than zero
• C) If the net present value is equal to the required rate of return
• D) None of these answers is correct.

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Definitions:

Average Total Cost

The total cost of production divided by the number of units produced, representing the per-unit cost of production.

Total Revenue

The total income generated by a company from the sale of goods or services before any expenses are subtracted.

Economies of Scale

Cost advantages that enterprises obtain due to the scale of their operations, leading to a reduction in average costs per unit as output increases.

Decreasing Marginal Product

A principle where each additional unit of input results in a smaller increase in output, after a certain point, indicating declining efficiency.