A Project Is Accepted Under the Net Present Value Method

question 170

Multiple Choice

A project is accepted under the net present value method when

• A)the net present value is zero or negative.
• B)the total amount of cash inflows exceeds the purchase price of the asset.
• C)the purchase price of the asset is less than the present value of net cash inflows.
• D)the present value of net cash inflows exceeds a predetermined minimum amount.

---

Definitions:

Accumulated Knowledge

The total information and skills that an individual has gathered over a period of time from experiences, education, and training.

Heritability

A measure of how much of the variation in a trait among a population can be attributed to genetic differences.

Genetic Variation

Differences in the DNA sequence among individuals, which contribute to the uniqueness of each person's physical and behavioral characteristics.

Intelligence Test

A standardised assessment used to measure a person's intellectual capabilities and potential.