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:

Subcultures

Groups within a larger culture that differentiate themselves through distinct beliefs, behaviors, or interests, often forming around shared activities or values.

Culture

The shared beliefs, customs, practices, and social behavior of a particular nation or people.

Traditions

Customs or beliefs handed down from generation to generation, often forming a part of a community's culture.

Broader Culture

Refers to the wider set of shared attitudes, values, goals, and practices that characterizes an institution, organization, or group larger than a single community.