alleryStart learning →NPV is the abbreviation for which method?
ANominal price variance
BNet present value
CNew project value
DNet payback volume
Answer & Solution
Correct answer: B. Net present value
1. The abbreviations follow the method names.
2. Two time value based options are discussed.
3. The net present value method is abbreviated NPV.
4. The internal rate of return is abbreviated IRR.
_Source: OpenStax Principles of Accounting, Volume 2: Managerial Accounting (CC BY-NC-SA 4.0), Ch 11 'Capital Budgeting Decisions'_
Keep practising Capital Investment Decisions
Browse all Capital Investment Decisions questions for US CMA Part 1, or explore more Accounting topics.
Related questions
Complete the capital budgeting rulesMatch each capital budgeting methodStack the capital budgeting termsSort the capital budgeting methodsPull the rope to the right method familyChoosing a project on payback alone risks favouring one that repays quickly but earns:Of the four named methods, how many account for the time value of money?The payback method's focus on recouping an investment makes it primarily a measure of: