What Is an Important Advantage of the Net Present Value

question 94

Multiple Choice

What is an important advantage of the net present value method of capital budgeting over the internal rate-of-return method?

• A)The net present values of individual projects can be added to determine the effects of accepting a combination of projects
• B)The net present value method is expressed as a percentage
• C)There is no advantage.
• D)Both A and B are correct.

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Definitions:

Human Attraction

The process or quality that draws people together and fosters interest, desire, or affection towards others.

Reactivity

A response or change in behavior of a system or organism resulting from external or internal stimuli.

Observing from Distance

The act of monitoring or studying someone or something from a place that is physically removed from the subject to minimize interference or influence.

Study Disclosure

The act of informing participants about the nature, purpose, and potential risks of a research study before their participation.