Question

If the net present value (NPV) of an investment proposal is positive, it would indicate that...

If the net present value (NPV) of an investment proposal is positive, it would indicate that the

a.

PV of cash outflows exceeds the PV of cash inflows.

b.

Payback period is less than one-half the life of the project.

c.

Internal rate of return (IRR) is equal to the discount percentage used in the NPV calculation.

d.

PV of cash inflows exceeds the PV of cash outflows

2.

Sales forecasts are the first step in the budgeting process because

a.

the revenue data is easiest to generate.

b.

almost all activities of a firm are driven by estimated sales demand.


c.

sales personnel have the quickest access to data.

d.

sales forecasts are the most objective of all budgeted activities.

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