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NPV: (choose) A-ratio of the present value of positve cash flows to present valu

ID: 2827093 • Letter: N

Question

NPV: (choose)

A-ratio of the present value of positve cash flows to present value of negative cash flows

B-present value of all past, current, and future cash flows associated with a project

C-time needed for the project to yield a positive NPV

D-present value of a projects current and future relevent cash flows

E-rate that sets PI equal to zero

F-The rate that sets NPV equal to zero

G-ration of Payback time per IRR

H-the amount of time to recover a project's investment

PI: (choose)

A-ratio of the present value of positve cash flows to present value of negative cash flows

B-present value of all past, current, and future cash flows associated with a project

C-time needed for the project to yield a positive NPV

D-present value of a projects current and future relevent cash flows

E-rate that sets PI equal to zero

F-The rate that sets NPV equal to zero

G-ration of Payback time per IRR

H-the amount of time to recover a project's investment

IRR: (choose)

A-ratio of the present value of positve cash flows to present value of negative cash flows

B-present value of all past, current, and future cash flows associated with a project

C-time needed for the project to yield a positive NPV

D-present value of a projects current and future relevent cash flows

E-rate that sets PI equal to zero

F-The rate that sets NPV equal to zero

G-ration of Payback time per IRR

H-the amount of time to recover a project's investment

Payback (choose)

A-ratio of the present value of positve cash flows to present value of negative cash flows

B-present value of all past, current, and future cash flows associated with a project

C-time needed for the project to yield a positive NPV

D-present value of a projects current and future relevent cash flows

E-rate that sets PI equal to zero

F-The rate that sets NPV equal to zero

G-ration of Payback time per IRR

H-the amount of time to recover a project's investment

Explanation / Answer


1.

NPV:

Correct option is > D-present value of a projects current and future relevent cash flows

Explanation: NPV is sum of investment (negative value) and present value of cash flows.

2.

PI:

Correct option is > A-ratio of the present value of positve cash flows to present value of negative cash flows

Explanation: PI is ratio of present value of cash inflows to the present value of investment

3.

IRR:

Correct option is > F-The rate that sets NPV equal to zero

Explanation: IRR is rate at which sum of all present values of cash flow is equal to zero

4.

Payback:

Correct option is > H-the amount of time to recover a project's investment

Explanation: Payback period is in times it calculates the time to recover the investment.