The net present value of an investment is ________

A) the present value of all benefits (cash inflows)
B) the present value of all benefits (cash inflows) minus the present value of all costs (cash outflows) of the project
C) the present value of all costs (cash outflows) of the project
D) the present value of all costs (cash outflow) minus the present value of all benefits (cash inflow) of the project


Answer: B

Business

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A. people-oriented B. action-oriented C. content-oriented D. time-oriented

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A company had net sales of $230,000 for Year 1 and $288,000 for Year 2. The company's average total assets for Year 1 were $150,000 and $180,000 for Year 2. Calculate the total asset turnover for each year and comment on the company's efficiency in the use of its assets.

What will be an ideal response?

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If any cash is left in the sinking fund after bonds are redeemed, the following journal entry is prepared:

a. debit Cash and credit Sinking Fund Earnings. b. debit Cash and credit Bond Sinking Fund. c. debit Cash and credit Bonds Payable. d. debit Cash and credit Interest Expense. e. debit Bond Sinking Fund and credit Sinking Fund Earnings.

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When using the ______ approach to consulting, the client has typically framed the problem already as a gap in knowledge that the consultant can fulfill.

a. expert b. doctor-patient c. mechanic d. organization development

Business