Even If an Investment Opportunity Currently Has ________ NPV,it Does

question 5

Multiple Choice

Even if an investment opportunity currently has ________ NPV,it does not imply that the opportunity is ________.

• A) negative; worthless
• B) positive; worthless
• C) negative; worth more
• D) positive; worth more

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Definitions:

Negotiable Instrument

A negotiable instrument is a written document guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the payee able to transfer the instrument to another party.

Drawee

The party, usually a bank, upon whom a check or draft is drawn and is responsible for paying the specified amount of money to the holder.

Certifies

The act of formally confirming or acknowledging a fact or statement, often officially recognized by a signature or seal.

Draft

A preliminary version of a piece of writing, document, plan, or design that may be subject to further revision.