Using the Net Present Value Method, the Decision Rule for Projects

question 25

Multiple Choice

Using the Net Present Value method, the decision rule for projects when finance is not a restriction is:

• A)take on all projects with a positive NPV.
• B)select the project with the largest cash inflows.
• C)select the project where the cash inflows are greatest in the early years of the project.
• D)select the project with cash flows equal to the initial investment.

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