If the Net Present Value of a Proposed Investment Is

question 61

Multiple Choice

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

• A)the cost of the investment is more than the present value of the future cash flows.
• B)the investment does not earn the required rate of return.
• C)the present value of the future cash flows would be unaffected by the proposed investment.
• D)the business should make the investment because the present value of the future cash flows is more than the cost of the investment.

---

Definitions:

Carbon Dioxide

A colorless, odorless gas produced by burning carbon and organic compounds and by respiration. It is naturally present in the air and is absorbed by plants in photosynthesis.

Baking Soda

A chemical compound also known as sodium bicarbonate, used in baking as a leavening agent and for cleaning.

Coffee

A brewed drink prepared from roasted coffee beans.

Denatures

The process by which proteins lose their three-dimensional structure and function due to factors like changes in pH or temperature.