​According to the Net Present Value (NPV)rule,managers Choose to Invest

question 21

Multiple Choice

​According to the Net Present Value (NPV) rule,managers choose to invest if

• A)​The NPV of the project is less than zero
• B)The NPV of the project is greater than zero
• C)The NPV of the project is equal to zero
• D)​The NPV of the project is equal to the cost of capital

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Definitions:

Useful Purpose

A goal or outcome that serves an advantageous function or satisfies a need.

Behaviourism

A school of psychology that focuses on observable behavior rather than mental states, emphasizing the environmental influences on behavior.

Objectively Observed

The practice of measuring or noting phenomena without bias or influence from the observer's personal feelings or predispositions.

Psychologists

Professionals in the field of psychology who study mental processes and behavior.