When is the net present value negative,
A. the present value of cash outflows is greater than the future value of cash outflows
B. the future value of cash inflows is greater than the present value of cash outflows
C. the present value of cash outflows is greater than the present value of cash inflows
D. the present value of cash inflows is greater than the present value of cash outflows
Answer: Option C
Related Questions on Costing
Basic objective of cost accounting is ________
A. tax compliance.
B. financial audit.
C. cost ascertainment.
D. profit analysis.
Process costing is suitable for ________.
A. hospitals
B. oil refing firms
C. transport firms
D. brick laying firms
The cost which is to be incurred even when a business unit is closed is a _____.
A. imputed cost
B. historical cost
C. sunk cost
D. shutdown cost
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