The Investment Rule for Contingent Projects Is

question 131

Multiple Choice

The investment rule for contingent projects is:

• A)to accept the projects only if all of the individual NPVs are positive.
• B)to accept the projects even if all of the individual NPVs are negative.
• C)to accept the projects only if the total NPV of all projects is positive.
• D)to accept the projects even if the total NPV of all projects is negative.

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Definitions:

ULPA

Stands for Uniform Limited Partnership Act, which is a statute that standardizes the laws governing limited partnerships in certain jurisdictions.

Limited Partnership

A business structure where one or more partners have limited liabilities, and at least one partner has unlimited liability.

Long-term Businesses

Companies or enterprises engaged in operations with the aim or expectation of continuing for many years into the future.

LLLP

A limited liability limited partnership, a type of partnership where some partners have limited liability (similar to limited partners in an LP) while also having the ability to participate in management.