The analysis technique that uses a discount rate determined from the company's cost of capital to establish the present value of a project is commonly called:

A) return on investment (ROI).
B) break-even analysis (BEA).
C) net present value (NPV).
D) future value (FV).
E) currency rate analysis (CRA).


C
Explanation: C) NPV uses a discount rate determined from the company's cost of capital to establish the present value of a project. The discount rate is used to determine the present value of both cash receipts and outlays.
CL

Business

You might also like to view...

If a company does not maintain its treasury stock records on a specific identification basis, which of the following approaches may be used to record a reduction in the treasury stock account when the stock is reissued?

A) FIFO or average costing B) FIFO or LIFO costing C) LIFO or average costing D) none of these

Business

GAS can be used with simple data structures but not complex structures

Indicate whether the statement is true or false

Business

The following information regarding a dependent variable y and an independent variable x is provided:

?x = 90?(y - )(x - ) = -156?y = 340?(x - )2 = 234n = 4?(y - )2 = 1974SSR = 104? The y-intercept is A. -.667. B. .667. C. 100. D. -100.

Business

________ involves examining a company's operating environment to identify opportunities and threats.

A. Pareto analysis B. Gap analysis C. Internal analysis D. External analysis

Business