A Project Is Accepted Under the Net Present Value Method

question 20

Multiple Choice

A project is accepted under the net present value method when

• A) the percentage return is greater than a predetermined minimum percentage.
• B) total net cash inflows exceed the purchase price of the asset.
• C) the purchase price of the asset is less than the present value of net cash inflows.
• D) the present value of net cash inflows exceeds a predetermined minimum amount.

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Definitions:

Rigorously Constructed

Created or designed with a meticulous and thorough approach to ensure high quality and reliability.

Anecdotal Information

A record of an individual that generally includes behaviors that are consistent or inconsistent. A type of record and personal document.

Usual Manner

Refers to the typical or customary way in which an activity is performed or an action is carried out.

Behaviors

The observable actions or reactions of individuals, often in response to their environment or stimuli.