Which of the Following Is Not a Rationale for Using

question 103

Multiple Choice

Which of the following is not a rationale for using the NPV method in capital budgeting?

• A) An NPV of zero signifies that the project's cash flows are just sufficient to repay the invested capital and to provide the required rate of return on that capital.
• B) A project whose NPV is positive will increase the value of the firm if that project is accepted.
• C) A project is considered acceptable if it has a positive NPV.
• D) A project is not considered acceptable if it has a negative NPV.
• E) All of the above are true.

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Definitions:

Workers' Compensation Acts

Laws providing financial compensation to employees who suffer injuries or illnesses as a result of their job.

Road Safety

Measures and methods taken to prevent road users from being killed or seriously injured.

Gas Station

A retail establishment that sells fuel and often other goods and services to motor vehicle users.

Unreasonable Risk

Exposing individuals or groups to a level of danger or harm that is not justified by the potential benefits or is beyond what is considered acceptable under the circumstances.