In capital budgeting analysis, the use of a cumulative NPV is useful for:
A)determining a probability distribution of NPVs.
B)determining the time required to achieve a positive NPV.
C)determining how the required rate of return changes over time.
D)determining how the cost of capital changes over time.
E)A and B

Question

In capital budgeting analysis, the use of a cumulative NPV is useful for:​
A)determining a probability distribution of NPVs.
B)determining the time required to achieve a positive NPV.
C)determining how the required rate of return changes over time.
D)determining how the cost of capital changes over time.
E)A and B

Quizplus · Accepted Answer

The Answer is B

In Capital Budgeting Analysis, the Use of a Cumulative NPV