-A Firm Evaluates All of Its Projects by Using the NPV

question 100

Multiple Choice

-A firm evaluates all of its projects by using the NPV decision rule.At a required return of 14 percent,the NPV for the following project is _____ and the firm should _____ the project.

• A) $5,684.22;reject
• B) $7,264.95;accept
• C) $7,264.95;reject
• D) $9,616.93;accept
• E) $9,616.93;reject

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Definitions:

Electronic Funds Transfer

The digital transfer of money from one bank account to another, either within a single financial institution or across multiple institutions, via computer-based systems.

Accounts Payable

The amounts a company owes because it purchased goods or services on credit from a supplier or vendor.

Internal Control

A process designed by an organization's management and personnel to provide reasonable assurance regarding the achievement of effectiveness and efficiency of operations, reliability of financial reporting, and compliance with applicable laws and regulations.

Reasonable Assurance

A concept in auditing that suggests although not absolute, there is a high level of confidence in the financial statements accuracy.