According to the Net Present Value Rule, an Investment in a Project

question 100

Multiple Choice

According to the net present value rule, an investment in a project should be made if the:

• A)net present value is greater than the cost of investment.
• B)net present value is greater than the present value of cash flows.
• C)net present value is positive.
• D)net present value is negative.

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Definitions:

General Agreement on Tariffs and Trade (GATT)

An international treaty that was aimed at reducing tariffs and other trade barriers to promote economic cooperation and international trade.

World Trade Organization (WTO)

An international organization that regulates international trade by enforcing agreed-upon trade rules among its member countries.

Multilateral Trade

International trade conducted between more than two countries, without discrimination against any of the participating countries.

Political Unrest

Situations of disorder or instability in a political context, which can impact businesses by disrupting operations, supply chains, or markets.