Steps Used in Applying the Net Present Value Method to a Proposed

question 147

Multiple Choice

Steps used in applying the net present value method to a proposed capital investment do NOT include ________.

• A) identify the amount and timing of relevant expected cash inflows and outflows
• B) find the present value of each expected future cash inflow and outflow
• C) find the sum of the present values of each expected future cash inflow and outflow
• D) find the future value of the cash outflow that occurs at the present time.

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Definitions:

Consistency

is the tendency to maintain a uniform behavior, attitude, or belief over time.

Cognitions

Mental processes involved in gaining knowledge and comprehension, including thinking, knowing, remembering, judging, and problem-solving.

Motivated

Having a desire or willingness to achieve something, often accompanied by enthusiasm.

Scientific Process

A systematic series of steps involving observation, experimentation, and the formulation and testing of hypotheses to acquire new knowledge.