The Net Present Value Method Focuses On

question 98

Multiple Choice

The net present value method focuses on:

• A)cash inflows
• B)accrual-accounting net income
• C)cash outflows
• D)Both A and C are correct.

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Definitions:

Banker's Acceptance

A short-term financial instrument issued by a company that is guaranteed by a commercial bank. It is commonly used in international trade.

Commercial Draft

An instrument used in international trade where the seller instructs the buyer to pay a specified amount of money at a specified time.

Carrying Cost

The total cost of holding inventory, including storage, maintenance, and insurance.

Managing Credit

The process of monitoring and controlling a person's or business's credit usage and payments to ensure financial stability and minimize risk of default.