Author Question: Net present value will be greater (Read 23 times)

V@ndy87 · **on:** Dec 3, 2019

Question 1

Net present value
◦ is the discounted value of a series of future cash receipts.
◦ is profit after taxes.
◦ is gross domestic product less depreciation.
◦ is sales volume less sales and excise taxes.
◦ ignores the time value of money.

Question 2

Net present value will be greater
◦ for a 4% discount rate than for a 6% discount rate.
◦ as the total of the cash receipts, made in same time periods, is smaller.
◦ as a fixed set of cash receipts occurs later rather than earlier.
◦ for one end-of-year receipt of $1200 than for twelve monthly receipts of $100 each.
◦ All of the above are true.

vickybb89 · **Reply #1 on:** Dec 3, 2019

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