Use the Following Information to Answer the Question(s) Below

question 33

Multiple Choice

Use the following information to answer the question(s) below.
Nielson Motors is considering an opportunity that requires an investment of $1,000,000 today and will provide $250,000 one year from now, $450,000 two years from now, and $650,000 three years from now.
-If the appropriate interest rate is 15%,then Nielson Motors should:

• A) Invest in this opportunity since the NPV is positive.
• B) Do Not Invest in this opportunity since the NPV is positive.
• C) Invest in this opportunity since the NPV is negative.
• D) Do Not Invest in this opportunity since the NPV is negative.

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Definitions:

Intelligence Test

A psychological assessment tool designed to measure a person's cognitive abilities and potential in comparison to a population.

Exceptional Achievement

Refers to performance that significantly surpasses the standard or expected level, often in a specific field or discipline.

Innate Talent

Natural ability or skill that an individual is born with, often seen as a predisposition towards certain activities or fields.

Construct Validity

The degree to which a test measures what it claims, or purports, to be measuring.