Which of the Following Would Be the Best Basis on Whether

question 52

Multiple Choice

Which of the following would be the best basis on whether to accept an investment opportunity or not?

• A)if it has positive total cash inflows
• B)if it has a payback period in less than 10 years
• C)if the investment's rate of return is higher than the company's current year required rate of return
• D)if the net present value is positive

---

Definitions:

Budget Set

The collection of all possible consumption bundles that an individual can afford with their income at current prices.

Line Segments

Part of a line that is bounded by two distinct end points, and contains every point on the line between its endpoints.

Original Bundle

The combination of goods and services initially allocated or owned by a consumer before any trades are made.

Price Of X

The specific cost or amount of money required to purchase a good or service denoted as "X".