Solved

Which of the Following Is a Reason That Makes NPV

Question 114

Multiple Choice

Which of the following is a reason that makes NPV a better approach to capital budgeting on a purely theoretical basis?


A) It measures the benefits relative to the relative amount invested.
B) The reinvestment rate assumed by this method is reasonable.
C) Financial decision makers are inclined to higher rates of return.
D) Interest rates are expressed as annual rates of return.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions