Net Present Value
7 practice questionsEngineering EconomicsStep-by-step solutions
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1
If a project has positive net present value, what does that usually mean?
A.It is expected to add value after discounting cash flows
B.It must have zero risk
C.It has no initial cost
D.It cannot be compared with alternatives
2
Using the NPV criterion, a project is economically acceptable when its NPV is:
A.Less than zero
B.Greater than zero
C.Exactly equal to the payback period
D.Equal to the interest rate
3
A project should generally be accepted if its net present value (NPV) is:
A.Greater than zero
B.Less than zero
C.Exactly zero
D.Negative but small
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