If the Net Present Value Analyses of a Project Resulted

question 89

Multiple Choice

If the net present value analyses of a project resulted in a positive value and the company does not accept the project, it may be assumed that

• A)qualitative factors outweigh the benefit of the investment.
• B)an alternative project has a lower NPV.
• C)the net initial investment cannot be recovered.
• D)the return is greater than that required by the company.
• E)quantitative factors outweigh the benefit of the investment.

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Definitions:

Manufacturing Overhead

Costs incurred from the manufacturing process, which exclude both direct labor and materials, are categorized as indirect costs.

Estimated Total

An approximation of the total value, cost, or quantity of a particular item or project.

Total Job Cost

The comprehensive cost associated with a specific job or project, including materials, labor, and overhead.

Total Job Cost

The complete cost of a particular job, including materials, labor, and overhead.