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

question 31

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 10%,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:

Impersonal Communication

Communication where the interactions are formal, lack personal involvement, and are often structured, typically found in business or professional settings.

Clarify

To make a statement or situation less confused and more comprehensible.

Vague

Lacking clarity or precision in thought or expression; not clearly expressed or easily understood.

Sender

The individual or entity that initiates a message or communication, intending for it to be received and understood by one or more recipients.