_________ quantifies, in dollar terms, how stockholder wealth will be affected by undertaking a project.
A) Discounted payback analysis.
B) The average accounting return.
C) The internal rate of return.
D) Net present value.
E) The profitability index.

Question

Quizplus · Accepted Answer

Net present value (NPV) quantifies in dollar terms how stockholder wealth will be affected by undertaking a project by considering the present value of its cash flows minus the initial investment.

_________ Quantifies, in Dollar Terms, How Stockholder Wealth Will Be