Which One of the Following Statements Concerning Net Present Value

question 71

Multiple Choice

Which one of the following statements concerning net present value (NPV) is correct?

• A)An investment should be accepted if,and only if,the NPV is exactly equal to zero.
• B)An investment should be accepted only if the NPV is equal to the initial cash flow.
• C)An investment should be accepted if the NPV is positive and rejected if it is negative.
• D)An investment with greater cash inflows than cash outflows will always have a positive NPV.
• E)Any project that has positive cash flows for every time period after the initial investment should be accepted.

---

Definitions:

Disciplines

Fields of study or branches of knowledge, often characterized by specific methods, theories, and terminology.

First-Hand Experience

Direct personal involvement or observation of events, without intermediary information sources.

Genetic Factors

Attributes, characteristics, or predispositions determined by the genes inherited from one's parents.

Physiological Factors

Aspects related to the body's biological functions that affect an individual's health, behavior, and abilities.