Assume the Net Present Value Method Is Used to Evaluate

question 73

Multiple Choice

Assume the net present value method is used to evaluate investment opportunities.A manager is faced with several investments,but only has funding for one investment.Which investment should be chosen?

• A) the investment with the lowest net present value
• B) the investment with a net present value equal to zero
• C) the investment with a negative net present value
• D) the investment with the largest net present value

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Definitions:

Maturation

The process of becoming mature; encompasses the physical, mental, and emotional developments that occur as a person ages.

Learning

A process that results in a relatively permanent change in behavior or potential behavior that occurs as a result of experience or practice.

Growth Cycles

Periods of development characterized by rapid growth followed by more stable periods, applicable to both biological and economic systems.

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with the unconditioned stimulus, eventually comes to trigger a conditioned response.