MC 14 What is the net present value (NPV) method in capital budgeting?
A. A method used to evaluate the profitability of a potential investment
B. A method used to evaluate the risk of a potential investment
C. A method used to evaluate the liquidity of a potential investment
D. A method used to evaluate the marketability of a potential investment
Answer:A
MC 14 What is the net present value (NPV) method in capital budgeting?
A. A method used to evaluate the profitability of a potential investment B. A method used to evaluate the risk of a potential investment C. A method used to evaluate the liquidity of a potential investment D. A method used to evaluate the marketability of a potential investment