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:

Psychokinesis

The supposed ability to move or manipulate objects with the mind without physical interaction.

Subliminal Perception

The process by which stimuli are presented below the threshold of conscious awareness but still influence thoughts, feelings, or actions.

Acupuncture

Use of pins to diminish pain, possible because of stimulation of release of endorphins and cortisol.

Kinesthesis

The sensory system's ability to detect body position and movement, enabling coordination and balance.