Which One of the Following Statements Is Correct

question 85

Multiple Choice

Which one of the following statements is correct?

• A)The net present value is a measure of profits expressed in today's dollars.
• B)The net present value is positive when the required return exceeds the internal rate of return.
• C)If the initial cost of a project is increased, the net present value of that project will also increase.
• D)If the internal rate of return equals the required return, the net present value will equal zero.
• E)Net present value is equal to an investment's cash inflows discounted to today's dollars.

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Definitions:

Greatest Happiness

The foundational concept of utilitarianism that proposes actions are right if they aim to promote the greatest happiness for the greatest number of people.

Beneficial Effects

Positive impacts or outcomes that result from certain actions or policies.

Ethical Action

An action taken that adheres to principles of ethics, often considered morally right.

Utilitarian Prosecutor

A legal prosecutor who bases their decisions on the outcome that would provide the greatest good for the greatest number, focusing on the overall happiness or utility of the outcome.