3 years ago

Which of the following best describes the Net Present Value rule?

1 answer:

8 0

Answer:

(B) Take any investment opportunity where the net present value (NPV) is not negative; turn down any opportunity when it is negative.

Explanation:

Net present value (NPV) simply differentiates between the present value of cash inflows and the present value of cash outflows.

And the rule is that a company should only invest or be engaged in any business that has a positive net present value and exclude themselves from businesses that have been negative net present value as this can increase the company's income.

You might be interested in

Garza Corporation has two production departments, Casting and Customizing. The company uses a job-order costing system and compu

SCORPION-xisa [38]

Answer:

$57,400

Explanation:

The computation of the estimated total manufacturing overhead for the Customizing Department is shown below:

= Total fixed manufacturing overhead cost + Direct labor-hours × Variable manufacturing overhead per direct labor-hour

= $35,000 + 7,000 direct labor hours × $3.20

= $35,000 + $22,400

= $57,400

All other information that is given in the question is ignored.

7 0

3 years ago

Why would a home buyer choose an adjustable-rate mortgage?

REY [17]

Answer: A

Explanation:

The borrower can adjust the monthly payment depending on his or her income.

8 0

3 years ago

Read 2 more answers

Which of the following statement is not true about the Project stakeholders?

xxMikexx [17]

I think d is the answer

Explanation:

all stakeholders must not be independent all must work together

4 0

2 years ago

How can you solve circle geometry in a simple way

lisabon 2012 [21]

Answer: by using the formula A=pi(3.14) R(radius) squared

Explanation:

Hope that helped

8 0

2 years ago

Read 2 more answers

Josh bought a bond with a par value of 1,500 from company ABC. The bond pays twenty annual coupons of 90 and matures at the end

ElenaW [278]

Answer: c

Explanation:

3 0

2 years ago