The Net Present Value Method of Evaluating Proposed Investments

question 24

Multiple Choice

The net present value method of evaluating proposed investments:

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

---

Definitions:

Potential Customers

Individuals or entities that are likely to be interested in a company's product or service but have not yet made a purchase.

Parallel Referral Sale

A selling technique where a salesperson gains new prospects through recommendations from existing customers in a similar field or industry.

Modular Office Furniture

Furniture designed in modules or parts that can be easily moved, rearranged, or adjusted, allowing for flexible workspace layouts and efficient use of space.

Space Planning

The process of organizing furniture and office functions to work effectively together while using space efficiently.