In Which of the Following Condition an Investment Is Considered

question 7

Multiple Choice

In which of the following condition an investment is considered desirable?

• A) When the cost is less than the future value of present cash flows
• B) When profit is less than the present value of future cash flows
• C) When present value of future cash flows is less than the cost
• D) None of these

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Definitions:

Linguistic Intelligence

The ability to think in words and to use language to express and appreciate complex meanings, including sensitivity to the meanings of words, order among words, and sound, rhythms, inflections, and meter of words.

Creative Intelligence

The capacity to solve problems and produce new products, concepts, or artworks through novel or imaginative processes.

Linguistic Intelligence

The ability to use language effectively, including skills in reading, writing, speaking, and understanding.

Fluid Intelligence

The ability to reason and solve new problems independently of previously acquired knowledge.