Which of the Following Situations Suggests the Acceptance of an Investment

question 80

Multiple Choice

Which of the following situations suggests the acceptance of an investment proposal?

• A)The present value of the net cash inflows exceeds the initial investment.
• B)The IRR is lower than the hurdle rate.
• C)The cash inflows are lesser than the initial investment.
• D)The investment will have a residual value.

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Definitions:

Recognizing

The act of identifying something or someone as already known or familiar; perceiving the significance or understanding the nature of something.

Lasting Feelings

Enduring emotions or sentiments that persist over a significant period of time.

Behavioral Tendencies

Inherent or learned patterns of behavior or reactions to situations.

Job Satisfaction

The level of contentment employees feel towards their jobs, often influencing performance and retention.