Which of the Following Is True About the Net Present

question 39

Multiple Choice

Which of the following is true about the Net Present Value method?

• A) The NPV does not utilize time value of money concepts.
• B) The NPV assumes that all cash flows are reinvested at the firm's discount rate (the firm's cost of capital).
• C) The NPV allows projects to be ranked by rate of return.
• D) The NPV is a rate of return that is acceptable to the firm.

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Definitions:

Cultural Circumstances

The societal, economic, and historical conditions that influence the beliefs, behaviors, and practices of individuals or communities.

REM Sleep

Rapid eye movement sleep, in which an individual’s brain wave activity is remarkably similar to that of the waking state but the individual is asleep.

Experience-expectant

A term related to brain development, referring to the process by which the brain evolves in response to general environmental stimuli that are expected to occur in all typical environments.

Sensory Deprivation

A condition in which one or more of the senses is diminished or eliminated, often for therapeutic or experimental purposes.