Net Present Value

question 33

Multiple Choice

Net present value:

• A) cannot be used when deciding between two mutually exclusive projects.
• B) is more useful to decision makers than the internal rate of return when comparing different sized projects.
• C) is easy to explain to non-financial managers and thus is the primary method of analysis used by the lowest levels of management.
• D) is not an as widely used tool as payback and discounted payback.
• E) is very similar in its methodology to the average accounting return.

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Definitions:

Iris

The colored part of the eye that controls the size of the pupil and the amount of light that enters the eye.

Refraction

The bending of light as it passes from one medium to another with a different density, affecting its speed and direction.

Rhodopsin

A light-sensitive receptor protein involved in visual phototransduction in the retina of the eye.

Visual Pigment

Photoreceptive molecules in the retina that absorb light and trigger nerve impulses that result in vision.