The Net Present Value Approach to Investment Results in an Investment

question 120

Multiple Choice

The Net Present Value approach to investment results in an investment being undertaken only if

• A) its net present value is positive.
• B) its net present value is zero.
• C) it has positive cash flow.
• D) its internal rate of return equals the rate of interest.

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Definitions:

Tort of Deceit

A legal claim arising from intentionally misleading or deceiving another, causing harm or loss.

Quasi-contractual

A legal concept where a court enforces an obligation on parties as if they had entered into a contract, to prevent unjust enrichment.

Necessaries

Essential items required for living, often related to contracts for minors for goods and services essential to their welfare.

Disaffirmance

The act of denying, refusing, or contradicting an assertion or contract, especially in legal contexts.