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

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Definitions:

Drawer

The party that writes and signs a check, directing a bank to pay the check's amount to the person or entity named as the payee.

Drawee

The party on whom a check or draft is drawn, and who is expected to pay the amount specified.

Approach-approach Conflict

A psychological dilemma that occurs when an individual must choose between two desirable options.

Valued Promotion

The process of advancing or enhancing the worth or merit of an idea, individual, or product often through marketing or recognition efforts.