The Primary Reason That Company Projects with Positive Net Present

question 10

Multiple Choice

The primary reason that company projects with positive net present values are considered acceptable is that:

• A) they create value for the owners of the firm.
• B) the project's rate of return exceeds the rate of inflation.
• C) they return the initial cash outlay within three years or less.
• D) the required cash inflows exceed the actual cash inflows.
• E) the investment's cost exceeds the present value of the cash inflows.

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Definitions:

Safety

The condition of being protected from or unlikely to cause danger, risk, or injury.

Esteem

The respect, admiration, or high regard that an individual is held in by others or themselves; often relates to one's reputation or standing within a community.

Belonging

An emotional need to be part of a group, feeling connected and accepted by others.

Maslow's Need Hierarchy

A theory in psychology that prioritizes human needs in a pyramid structure, from basic physiological needs to self-actualization at the top.