An Investment Should Be Undertaken

question 146

Multiple Choice

An investment should be undertaken

• A) if the present value of the expected income stream associated with the investment is greater than the full cost of the investment project.
• B) if the present value of the expected income stream associated with the investment is less than the full cost of the investment project.
• C) any time the present value of the expected income stream associated with the investment is positive.
• D) if the present value of the costs of the investment project exceed the present value of the expected returns from the investment project.

---

Definitions:

Chatty

Describes a conversational and informal tone or style of communication.

Abstract Words

Terms that represent ideas, qualities, or concepts rather than physical, tangible objects.

Euphemism

A mild or indirect word or expression substituted for one considered to be too harsh or blunt when referring to something unpleasant or embarrassing.

Passive Voice

A sentence structure in which the subject is the recipient of the action, often used to deflect responsibility or focus attention elsewhere.