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This Is a Reason to Employ the Net Present Value

Question 63

Multiple Choice

This is a reason to employ the net present value method in making capital expenditure decisions.


A) The NPV method determines the length of time necessary to recover the entire cost of an investment from the resulting annual net cash flow.
B) The NPV method determines the rate of return on average investment.
C) The NPV method considers the timing of future cash flows.
D) All of the above

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