Which of the Following Would Be the Best Basis on Which

question 118

Multiple Choice

Which of the following would be the best basis on which to accept an investment opportunity?

• A) If it has positive net cash flows
• 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 rate of return
• D) If the net present value of all cash flows is positive

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Definitions:

Punishment

The imposition of a penalty in response to an undesirable behavior, with the intention to reduce or eliminate that behavior.

Aversive Event

An unpleasant or uncomfortable occurrence that an individual seeks to avoid or escape.

Behavior Suppression

The act of consciously or unconsciously inhibiting or restraining one's own actions or reactions.

Operant Conditioning

A learning process through which the strength of a behavior is modified by reinforcement or punishment.