According to the NPV acceptance criterion, projects: (Points : 1) with a positiv

Question

According to the NPV acceptance criterion, projects: (Points : 1) with a positive NPV should be accepted, since they are value increasing. with the highest NPV should be accepted. with an NPV over $10,000 should be accepted, since value increases less than that are trivial. are acceptable only if the ratio of benefits to costs is greater than zero.

Which of the following is true when a company has very little debt? (Points : 1)        The expected costs of bankruptcy will be moderate.
       The expected costs of bankruptcy will be about zero.
       The risk of bankruptcy is still significant.
       Managers will work very hard to avoid bankruptcy.

Question 7. 7. Sunk costs are best described as: (Points : 1)        money that has been lost.
       an expenditure that did not produce a profitable product.
       an expenditure on a product that was later discontinued.
       expenditures on a proposed project that cannot be recovered whether the project is implemented or not.

Explanation / Answer

Answer:

1. HIghest NPV should be Accepted.

2. The Expected Cost of Bankruptcy will be about zero.

7.   an expenditure on a product that was later discontinued.

8.It Is Simple to Calculate

Thanks

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