The Net Present Value Approach to Investment Results in an Investment

question 120

Multiple Choice

The Net Present Value approach to investment results in an investment being undertaken only if

• A) its net present value is positive.
• B) its net present value is zero.
• C) it has positive cash flow.
• D) its internal rate of return equals the rate of interest.

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Definitions:

Photosystem

A complex of proteins and pigments in plants and algae that absorbs light energy and converts it into chemical energy during photosynthesis.

Chlorophyll

A green pigment found in the chloroplasts of plants, algae, and some bacteria, essential for photosynthesis as it absorbs light energy to convert carbon dioxide and water into glucose.

Mitochondrion

An organelle found in large numbers in most cells, in which the biochemical processes of respiration and energy production occur. It has a double membrane, the inner layer being folded inward to form layers (cristae).

Chloroplast

Organelle of photosynthesis in plants and photosynthetic protists. Light-dependent reactions occur at its inner thylakoid membrane; light-independent reactions, in the stroma.