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Which of the Following Are True About the Net Present

Question 16

Multiple Choice

Which of the following are true about the net present value method?


A) It is a method used in decision-making that measures the equivalent value of a stream of payments over time
B) The NPV represents the amount that would need to be invested at a commercial interest rate at the beginning of the period of payments in order to meet all the payments as they fall due
C) The NPV is a technique to overcome some of the shortcomings of the payback method by recognising future cash flows beyond the payback period
D) All of these choices

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