If the Net Present Value of a Proposed Investment Is

question 43

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 firm should make the investment because the present value of the future cash flows is more than the cost of the investment.

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Definitions:

Translation

The process of converting the genetic information in mRNA into a sequence of amino acids, leading to protein synthesis.

Circadian Rhythm

A natural, internal process that regulates the sleep-wake cycle and repeats on each rotation of the Earth roughly every 24 hours.

Biological Process

Complex interactions among molecules, cells, and organisms that fulfill essential life functions.

Day

The period of 24 hours from one midnight to the next, or the part of this period when it is light and which is distinguished from night.