The Primary Reason That Company Projects with Positive Net Present

question 234

Multiple Choice

The primary reason that company projects with positive net present values are considered acceptable is that:

• A) They create value for the owners of the firm.
• B) The project's rate of return exceeds the rate of inflation.
• C) They return the initial cash outlay within three years or less.
• D) The required cash inflows exceed the actual cash inflows.
• E) The investment's cost exceeds the present value of the cash inflows.

---

Definitions:

Euphoria

A feeling or state of intense excitement and happiness.

Opiates

Opiates are a class of drugs naturally derived from the opium poppy plant, commonly used for their pain-relieving properties, but they also carry a high risk of addiction.

Amphetamine Psychosis

A psychiatric disorder characterized by hallucinations, delusions, and other psychotic features, induced by misuse or high doses of amphetamine drugs.

Paranoid Schizophrenia

A subtype of schizophrenia characterized by prominent delusions of persecution or grandeur, often accompanied by auditory hallucinations.