The Net Present Value (NPV) Approach

question 19

Multiple Choice

The Net Present Value (NPV) approach:

• A) is a suitable form of analysis for property investments.
• B) would include net rental income as cash outflows as part of NPV analysis.
• C) results in a greater positive NPV / lower negative NPV when a relatively higher discount rate is used.
• D) both b and c

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Definitions:

Unauthorized Charges

Expenses made to a credit card, bank account, or other financial account without the account holder’s approval or knowledge.

Credit Card

A payment card issued by financial institutions allowing the cardholder to borrow funds for purchases or cash advances.

Strict Product Liability

A legal doctrine that makes a manufacturer, distributor, or seller of a defective product liable for the damages caused by that product, regardless of fault.

Defective Condition

A condition that makes a product unreasonably dangerous to the consumer, user, or property. See product liability.