ch6
Student: _______________________________________________________________________________________
Multiple Choice Questions
1. The difference between the present value of an investment and its cost is the:
A. net present value.B. internal rate of return.C. payback period.D. profitability index.E. discounted payback period.
2. Which one of the following statements concerning net present value (NPV) is correct?
3. The length of time required for an investment to generate cash flows sufficient to recover the initial cost of the investment is called the:
4. Which one of the following statements is correct concerning the payback period?
5. The length of time required for a project's discounted cash flows to equal the initial cost of the project is called the:
A. net present value.

B. internal rate of return.C. payback period.D. discounted profitability index.E. discounted payback period.
6. The discounted payback rule states that you should accept projects:

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- Spring '11
- temur
- Net Present Value