An Analysis of a Proposal by the Net Present Value

question 78

Multiple Choice

An analysis of a proposal by the net present value method indicated that the present value exceeded the amount to be invested.Which of the following statements best describes the results of this analysis?

• A)The proposal is desirable and the rate of return expected from the proposal exceeds the minimum rate used for the analysis.
• B)The proposal is desirable and the rate of return expected from the proposal is less than the minimum rate used for the analysis.
• C)The proposal is undesirable and the rate of return expected from the proposal is less than the minimum rate used for the analysis.
• D)The proposal is undesirable and the rate of return expected from the proposal exceeds the minimum rate used for the analysis.

---

Definitions:

Mail and Postage

Expenses related to sending mail, including the cost of stamps, postage meters, and postal services.

Missing Funds

A situation where there is a discrepancy in accounting, indicating that money or assets are unaccounted for or lost.

Bank Statement

A document provided by a bank, detailing the transactions, balance, and other financial information in an account for a specific period.

Deposits In Transit

Funds that have been deposited by a company but have not yet been recorded by the bank.