The method that compares the present value of a projects


1. When making screening decisions using the net present value method, a project is acceptable if the NPV is greater than the IRR. the NPV is positive. the NPV is negative. the NPV is greater than the hurdle rate.

the NPV is greater than the IRR.

the NPV is positive.

the NPV is negative.

the NPV is greater than the hurdle rate.

2. The method that compares the present value of a project's future cash flows to the initial investment is

Net present value.

Payback period.

Accounting rate of return.

Internal rate of return.

3. The discount rate that would return a net present value equal to zero is the

Internal rate of return.

Accounting rate of return.

Annual rate of return.

Hurdle rate.

4. A problem in which you must calculate how much money you will have in the future as a result of investing a certain amount in the present is a

present value of an annuity problem.

present value of a single amount problem.

future value of a single amount problem.

future value of an annuity problem.

5. A problem in which you must calculate how much money you will have in the future as a result of depositing a fixed amount of money each period is a

present value of a single amount problem.

future value of a single amount problem.

future value of an annuity problem.

present value of an annuity problem.

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Financial Management: The method that compares the present value of a projects
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