If the Net-Present Value of an Investment Is Positive,which of the Following

question 67

Multiple Choice

If the net-present value of an investment is positive,which of the following is true?

• A)The net-present-value represents the amount of profit the company will make if it buys the asset.
• B)Describes the actual amount of the expected return.
• C)Indicates that the return the new asset will generate is expected to exceed the cost of capital.
• D)Describes the amount of difference between the expected return and the cost of capital.

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Definitions:

Protectionist Actions

Measures taken by a government to protect its domestic industries from foreign competition by imposing tariffs or quotas.

International Product Life Cycle

A theory explaining how a product matures and sales change over time on an international scale, including stages like introduction, growth, maturity, and decline.

Standardized

Conforming to a uniform style, size, or quality, often to facilitate compatibility and interoperability among various products or processes.

Innovating Company

A company that introduces new ideas, products, or methods to improve or transform its business operations.