When evaluating a proposal by use of the net present value method,if there is an excess of present value over the amount to be invested,the rate of return on the proposal is more than the rate used in the analysis.

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Quizplus · Accepted Answer

This statement is true. When using the net present value method, if there is an excess of present value over the amount to be invested, it indicates that the rate of return on the proposal is higher than the rate used in the analysis. This excess value is often referred to as the "net present value" of the proposal.

When Evaluating a Proposal by Use of the Net Present