The Decision to Accept or Reject an Investment Proposal That

question 39

Multiple Choice

The decision to accept or reject an investment proposal that computes the investment's net present value,using the organization's adjusted cost of capital as the discount rate and undertakes the investment if its net present value is positive,or rejects the investment if its net present value is negative is called the

• A)net present value method.
• B)future value method.
• C)internal rate of return method.
• D)external rate of return method.

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Definitions:

Competitors

Individuals or entities that compete within the same industry or market, offering similar or alternative products or services to the same customer base.

Income Statement

A financial document that reports a company's revenues, expenses, and profit over a specified time period.

Cash Balance

The amount of cash a company has available at any given time, reflecting its liquidity.

Payroll

The total amount of wages, salaries, and other earnings that a business pays to its employees.