The Net Present Value Rule States That You Should Accept

question 38

Multiple Choice

The net present value rule states that you should accept a project if the NPV:

• A)is equal to zero or negative
• B)exceeds the required rate
• C)is less than 1.0
• D)is positive
• E)exceeds the initial cost

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Definitions:

Ronald Reagan

The United States' 40th commander-in-chief from 1981 to 1989, famous for his right-wing policies and contributing to the conclusion of the Cold War.

Liberal Democrat

A member of a political party or ideology that combines liberal policies on social issues with democratic principles.

Federal Deficit

The annual shortfall where the government's expenditures exceed its revenues, contributing to the national debt.