If the Net Present Value of a Proposed Investment Is

question 19

True/False

If the net present value of a proposed investment is negative,it means that the investment should not be made.

Interpret financial ratios and their implications for a company's financial performance.

Evaluate the effects of changes in foreign exchange rates on recognizing gains or losses.

Account for dividends received from investments in other corporations.

Discuss reasons why companies invest in securities or other companies.

---

Definitions:

Option To Terminate

A provision in a contract that allows one or more parties to end the agreement under certain conditions, before the completion date.

Force Majeure

A major, unforeseen, or unanticipated event that occurs and prevents the performance of a contract.

Frustrated Contracts Act

Legislation that deals with contracts that, through no fault of either party, cannot be fulfilled due to unforeseen events.

Termination Clause

A provision in a contract that outlines the conditions under which the agreement can be ended prior to the completion of its term.