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:

Distribution Transformer

A transformer used in electrical power distribution to step down voltage levels from high to lower levels for consumer use.

Control Transformer

A transformer used to provide a stable voltage supply to control devices in electrical circuits, isolating them from the main power circuit.

Inrush Current

The amount of current that is drawn when an inductive device is first connected to the power line.

Magnetizing

Refers to the process of inducing magnetic properties in a material, usually by placing it within a magnetic field or by passing an electric current through it.