The Principle That an Investment Should Be Accepted If the Difference

question 210

Multiple Choice

The principle that an investment should be accepted if the difference between the investment's market value and its cost is positive and rejected if the difference is negative is referred to as the:

• A) Average accounting return rule.
• B) Internal rate of return rule.
• C) Profitability index rule.
• D) Discounted payback rule.
• E) Net present value rule.

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Definitions:

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