In Capital Budgeting Analysis, the Use of a Cumulative NPV

Multiple Choice

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) determining a probability distribution of NPVs AND determining the time required to achieve a positive NPV.