Which of the Following Best Describes an Approach Used in Capital

question 5

Multiple Choice

Which of the following best describes an approach used in capital budgeting where the present value of cash outflow is subtracted from the present value of cash inflows?

• A) Modified NPV
• B) NPV
• C) EVA
• D) Real options

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Definitions:

U.S. Dollar

The U.S. Dollar is the official currency of the United States, widely used as a benchmark in international trade and as a global reserve currency.

Imported Goods

Products or services that are brought into a country from another country for sale.

U.S. Exports

Goods and services produced in the United States and sold to other countries.

Contagion

The spread of economic or financial crises from one market or region to another, often accelerated by panic selling and loss of confidence.