Which of the Following Is True of the Net Present

question 156

Multiple Choice

Which of the following is true of the net present value method?

• A)It measures a project's time-adjusted rate of return.
• B)It discounts cash flows at the minimum desired rate of return.
• C)It ignores cash flows beyond the payback period.
• D)It applies only to mutually exclusive investment proposals.

---

Definitions:

Tunica Intima

The innermost layer of an artery or vein, consisting of a thin layer of endothelial cells that line the interior surface of the vessel.

Blood Vessel Walls

The structured layers composing the sides of arteries, veins, and capillaries, responsible for maintaining blood pressure and controlling blood flow.

Tunica Media

The middle layer of the wall of a blood vessel or hollow organ, consisting primarily of smooth muscle cells and elastic fibers.

Pulmonary Circulation

The passage of blood from the heart to the lungs and back to the heart, where it is oxygenated and rid of carbon dioxide.