The first term in an NPV calculation is usually
A) positive, because firms consider only positive returns.
B) positive, because interest charges do not accrue until the second period.
C) zero, because interest charges do not accrue until the second period.
D) negative, because funds for the project have to be borrowed up front before it is begun.
E) negative, because the cost of the project is immediate, but revenue streams from the project come later.
E
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What will be an ideal response?
All of the following are shortcomings of GDP as a measure to human well-being except it:
a. Excludes quality improvements that do not increase price or quantity sold. b. Excludes international transactions. c. Excludes black market and underground transactions. d. Counts harmful and dangerous output the same as useful output. e. Excludes non-market transactions.
Hitler's Germany was an example of a _________ economic system.
A. Capitalist B. Fascist C. Communist D. Socialist
The Statement of Cash Flows lists:
a. Operating, Investing, and Financing Activity b. Assets, Liabilities, and Owner's Equity c. Income, Expenses, and Liabilities d. Gains, Losses, and Net Income