The Net Present Value Method of Evaluating Proposed Investments

question 69

Multiple Choice

The net present value method of evaluating proposed investments

• A) measures a project's time-adjusted rate of return.
• B) discounts cash flows at the minimum desired rate of return.
• C) ignores cash flows beyond the payback period.
• D) applies only to mutually exclusive investment proposals.

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Definitions:

Lineation

Lineation in geology refers to any linear feature on the surface of a rock or within a rock mass, often created by the flow of the material or the alignment of minerals during deformation.

Sedimentary Rock

Rock formed from the accumulation or deposition of mineral or organic particles, often in layers, hardened over time by pressure and cementation.

Metamorphic Equivalent

A rock resulting from the metamorphism of an initial rock type, transforming its mineral composition or structure.

Greenstone

A metamorphic rock, typically formed under low-grade conditions, that has a greenish color due to the presence of minerals such as chlorite, epidote, or actinolite.