If Two Events Are Collectively Exhaustive,what Is the Probability That

question 98

Multiple Choice

If two events are collectively exhaustive,what is the probability that both occur at the same time?

• A)0.00
• B)0.50
• C)1.00
• D)This cannot be determined from the information given.

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Definitions:

Positive NPV

A scenario in which the net present value of a project's cash inflows exceeds its cash outflows, indicating profitability.

Negative NPV

A situation where the net present value (NPV) of a project or investment is less than zero, indicating that the projected cash flows are insufficient to cover the initial investment.

Discounted Payback Period

The discounted payback period is the time it takes for an investment to generate cash flows sufficient to recover its initial cost, taking the time value of money into account.

Discounted Cash Flows

A valuation method used to estimate the value of an investment based on its future cash flows, adjusted for the time value of money.