The Primary Reason That Company Projects with Positive Net Present

question 84

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.

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Definitions:

Campaign Promises

Commitments made by politicians to voters during their campaigns for office, outlining what they intend to accomplish if they get elected.

Reuptake

The process by which neurotransmitters are taken back into the synaptic vesicles of a neuron after being released, stopping their action on neighboring neurons.

Dopamine

A neurotransmitter involved in many functions, including mood regulation, reward-motivated behavior, and control of movement.

Norepinephrine

A neurotransmitter and hormone involved in the body's fight or flight response, regulating heart rate, blood pressure, and blood sugar among other physiological functions.