A Company Has Policy to Invest in New Opportunities If

question 77

True/False

A company has policy to invest in new opportunities if the investment has a positive NPV. See data below:
If the company has a hurdle rate of 6%, this investment will yield a positive NPV and should be accepted.

---

Definitions:

Circular Flow

An economic model that illustrates the continuous movement of goods, services, and money between producers and consumers in an economy.

Circular Flow Model

A diagram that illustrates the movement of goods, services, and money between households and businesses in the economy.

Resource Market

The resource market is where raw materials, labor, and capital resources are traded, enabling firms to produce goods and services and reflecting the interaction between supply and demand for resources.

Gross Domestic Product

A measure of the market value of all final goods and services produced in a country during a specific period, illustrating the size of its economy.