An Analysis of a Proposal by the Net Present Value

question 148

Multiple Choice

An analysis of a proposal by the net present value method indicated that the present value of future cash inflows exceeded the amount to be invested. Which of the following statements best describes the results of this analysis?

• A) The proposal is desirable, and the rate of return expected from the proposal exceeds the minimum rate used for the analysis.
• B) The proposal is desirable, and the rate of return expected from the proposal is less than the minimum rate used for the analysis.
• C) The proposal is undesirable, and the rate of return expected from the proposal is less than the minimum rate used for the analysis.
• D) The proposal is undesirable, and the rate of return expected from the proposal exceeds the minimum rate used for the analysis.

Identify the impact of self-esteem, both state and trait, on psychological well-being.

Explain the significance of self-presentation and social roles in interpersonal interactions.

Understand the role of effort and external justification in influencing attitudes and behavior.

Analyze the effects of social feedback and acceptance on an individual’s self-concept.

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Definitions:

Economic Profit

The divergence between overall financial returns and comprehensive expenses, integrating both apparent and implied costs.

Long Run

In economics, a period in which all factors of production and costs are variable, allowing all inputs to be adjusted.

Average Variable Cost

The total variable costs of production divided by the quantity of output produced, representing the cost per unit of output.

Total Revenue

The complete sum of funds a company acquires from selling goods or offering services over a specified time period.