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.
B
You might also like to view...
Which of the following is the least aggressive tactic used by advocacy groups?
Public communications Media advocacy Distributive bargaining Class action lawsuits
In which of the following situations is a business most likely to opt for a direct rather than an indirect marketing channel system for product distribution?
A) The business manufactures products for the consumer market rather than the business market. B) The business's products are sold in wide markets, and require localized availability of parts and services. C) The business is new to the market and does not have a network of contacts in place for distribution. D) The business wants to maintain complete control over its marketing messages and collection of payments for products. E) The business manufactures a product that people buy on impulse and is generally sold in small quantities.