Describes the rule to apply for net present value

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Reference no: EM131449034

1. Which statement below best describes the rule to apply for Net Present Value (NPV)?

A company should invest in projects that produce a negative NPV.

A company should invest in projects that produce the highest NPV.

A company should invest in all positive NPV projects.

A company should not invest in projects using the NPV method.

2. Which ratio measures how effectively a company is using assets to generate revenue?

Net margin

Plant assets to long-term liabilities

Asset turnover

Inventory turnover

Reference no: EM131449034

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