Which of the Following Is Not a Step in the Net

question 2

Multiple Choice

Which of the following is not a step in the net present value approach to capital budgeting?

• A)Identify the amount and timing of each cash flow.
• B)Determine the appropriate discount rate.
• C)Compare the discount rate to the hurdle rate.
• D)Calculate the net present value of the project.

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Definitions:

Imports

Goods and services brought into a country from abroad for sale.

Tariff

A tax imposed on imported goods, typically aimed at protecting domestic industries or raising government revenue.

Voluntary Export Restraint

An agreement between exporting and importing countries where the exporter agrees to limit the quantity of goods exported to the importing country.

Quota

A quota is a government-imposed trade restriction that limits the number or monetary value of goods that can be imported or exported during a particular time frame.