If the Net Present Value of a Proposed Investment Is

question 38

Multiple Choice

If the net present value of a proposed investment is positive:

• A)the investment not will be made.
• B)the cost of capital is higher than the internal rate of return.
• C)the cost of capital is positive.
• D)the cost of capital is less than the expected rate of return.

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Definitions:

Just World Hypothesis

The belief that the world is fundamentally fair, leading people to rationalize an undeserved, bad outcome as deserved.

Moral Foundation Theory

A social psychological theory that describes the origins of human moral reasoning on the basis of innate, modular foundations.

Moral Decisions

Decisions that involve the judgment of right or wrong, often based on a set of societal or personal ethical principles.

Respecting Authority

The act of acknowledging and adhering to the rules, directives, and positions of those in power or leadership.