Which of the following statements about net present value NPV is the most correct?

Table of Contents

Which of the following statements about net present value NPV is the most correct?

The correct answer is (C). NPV is calculated by getting the difference between the value in monetary terms of projected cash flows today, and the initial investment amount required

Which of the following statements is true of the net present value NPV )? Quizlet?

Which of the following statements is true of a project with net present value (NPV) of zero? An NPV of zero signifies that the project’s required rate of return is equal to its internal rate of return.

Which one of the following statement is always correct for a project with positive NPV?

D. An investment with greater cash inflows than cash outflows, regardless of when the cash flows occur, will always have a positive NPV and therefore should always be accepted. E. Any project that has positive cash flows for every time period after the initial investment should be accepted.

Which of the following is true of NPV?

…Q.Which of the following is true about NPV?A.It considers all the cash flowsB.It gives more weightage to distant flows than to near term flows3 more rows

Which of the following statements concerning net present value NPV is correct?

Which one of the following statements concerning net present value (NPV) is correct? An investment should be accepted if the NPV is positive and rejected if it is negative.

Which of the following statement is true about NPV?

Solution(By Examveda Team) The IRR must be greater than 0 is true if the Net Present Value (NPV) of a positive.

Which of the following correctly defines what net present value is?

D. An investment with greater cash inflows than cash outflows, regardless of when the cash flows occur, will always have a positive NPV and therefore should always be accepted. E. Any project that has positive cash flows for every time period after the initial investment should be accepted.

Which of the following statements is true regarding net present value NPV )?

The correct answer is (C). NPV is calculated by getting the difference between the value in monetary terms of projected cash flows today, and the initial investment amount required. A positive NPV implies that an investor may get a return on his investment.

What is the definition of net present value NPV quizlet?

Net Present Value (NPV) The difference between an investment’s market value and its cost. It is a measure of how much value is created or added today by undertaking an investment. If the payback period is less than some present limit.

What is true about net present value?

A positive NPV indicates that the projected earnings generated by a project or investmentu2014discounted for their present valueu2014exceed the anticipated costs, also in today’s dollars. It is assumed that an investment with a positive NPV will be profitable. An investment with a negative NPV will result in a net loss.

Which of the following is a correct definition of net present value quizlet?

All of these answers. Which of the following is a correct definition of Net Present Value? costs, benefits, and opportunity costs of the project

Which of the following statement is true if the NPV is positive?

Solution(By Examveda Team) The IRR must be greater than 0 is true if the Net Present Value (NPV) of a positive.

Which one of the following statements concerning NPV is correct?

Which one of the following statements concerning net present value (NPV) is correct? An investment should be accepted if the NPV is positive and rejected if it is negative.

When the net present value is positive the project’s?

The correct answer is (C). NPV is calculated by getting the difference between the value in monetary terms of projected cash flows today, and the initial investment amount required

Which of the following should be included in NPV calculation?

The following factors may need to be considered:

  • Throughput on goods sold. If the decision relates to an investment that will result in the sale of goods, include cash flows from the throughput generated by these goods. …
  • Cash from sale of asset. …
  • Maintenance costs. …
  • Working capital. …
  • Tax payments. …
  • Depreciation effect.

16-May-2022

Which of the following statements regarding net present value NPV and internal rate of return IRR is least accurate?

Q1: Which of the following statements about NPV and IRR is least accurate? If IRR is less than the cost of capital, the result will be a negative NPV. The discounted payback is longer than the regular payback because cash flows are discounted to their present value.

Which one of the following statement is always correct for a project with positive NPV *?

An investment with greater cash inflows than cash outflows, regardless of when the cash flows occur, will always have a positive NPV and therefore should always be accepted. E. Any project that has positive cash flows for every time period after the initial investment should be accepted. 2.

What is net present value Mcq?

The net present value Is calculated by discounting all cash flows to present value and subtracting outflows from inflows. Calculates the rate of return which leaves you indifferent between undertaking the project, and not undertaking the project. Leads to the same decisions as the use of the payback period.

Which of the following statement is true if the net present value NPV of a positive?

The correct answer is (C). NPV is calculated by getting the difference between the value in monetary terms of projected cash flows today, and the initial investment amount required

How is net present value defined?

What is net present value? u201cNet present value is the present value of the cash flows at the required rate of return of your project compared to your initial investment,u201d says Knight. In practical terms, it’s a method of calculating your return on investment, or ROI, for a project or expenditure.

What is the net present value quizlet?

The correct answer is (C). NPV is calculated by getting the difference between the value in monetary terms of projected cash flows today, and the initial investment amount required

Which one of the following statements concerning net present value is correct?

The present value of an investment’s future cash flows divided by its initial cost. Also called the benefit-cost ratio.

Which of the statement is true about NPV?

Solution(By Examveda Team) The IRR must be greater than 0 is true if the Net Present Value (NPV) of a positive.

What is NPV quizlet?

Net Present Value. The difference between an investments market value and cost. (An investment should be accepted if its NPV is positive)

What is the net present value of an investment quizlet?

Net present value (NPV) is the difference between the present value (PV) of the benefits and the present value (PV) of the costs of a project or investment.

Leave a Comment