The Principle That an Investment Should Be Accepted If the Difference

question 156

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:

Military Matters

Issues, strategies, and operations related to the armed forces and national defense.

Ultimate Decision Maker

The person or entity with the final authority to make a decision, often in a business or organizational context.

Foreign Government

The governing body of a nation-state or territory outside one's own country.

Diplomatic Recognition

The acknowledgment by one state of another's sovereignty and government, establishing formal diplomatic relations.