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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'_
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