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:

Tedious Projects

Projects that are often monotonous, repetitive, and perceived as dull or lengthy, requiring substantial time and effort.

Entrepreneurial Mindset

A way of thinking that enables individuals to overcome challenges, be decisive, and accept responsibility for outcomes.

Detrimental Effect

An adverse impact or negative consequence resulting from a particular action or event.

Creativity

The ability to transcend traditional ideas, rules, patterns, relationships, or the like, and to create meaningful new ideas, forms, methods, interpretations, etc.