An Investment Would Be Considered a Good Prospect Under Which

question 15

Multiple Choice

An investment would be considered a good prospect under which of the following conditions?

• A) The present value of the cash flows exceeds the initial investment.
• B) The IRR is lower than the hurdle rate.
• C) The cash inflows are greater than the initial investment.
• D) It has a residual value.

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Definitions:

Galaxies

Massive systems of stars, stellar remnants, interstellar gas, dust, and dark matter, bound together by gravitational attraction.

Universe

The vast expanse that includes all of space, time, matter, energy, planets, stars, galaxies, and all contents of space.

Electronic Equipment

Devices or systems that use electric currents or electromagnetic fields to function, such as computers, audio receivers, and smartphones.

Concise Language

The use of few words without losing the intended meaning or essence of the message.