Which of the following statements about the net present value is ...

[Alygatorr01285]

Which of the following statements about the net present value is true?
 
  A) It has an inadequate reinvestment assumption.
  B) It may be used to select among projects of different sizes.
  C) It produces a percentage result that is easy to describe.
  D) It is likely that there will be more than one NPV for a project.

Question 2

Statutory restrictions on dividend payments include all of the following EXCEPT
 
  A) if the dividend is being paid from capital invested in the firm.
  B) if, because of the dividend payment, the firm intends to sell new common stock to fund its
  capital budget.
  C) if liabilities exceed assets.
  D) if the amount of the dividend exceeds the firm's retained earnings.

[atrochim]

Answer to Question 1

B

Answer to Question 2

B