-An Investor Is Considering the Two Investments Shown Above

question 29

Multiple Choice

-An investor is considering the two investments shown above. Which of the following statements about these investments is true?

• A) The investor should take investment A since it has a greater net present value (NP
• V).
• B) The investor should take investment A since it has a greater internal rate of return (IR
• R).
• C) The investor should take investment B since it has a greater net present value (NP
• V).
• D) Neither investment should be taken since they both have a negative net present value (NP

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Definitions:

Achievement Motivation

Describes a person's drive to pursue and attain goals, often fueled by the desire for success or the fear of failure.

Motivational Factors

Elements or conditions that prompt an individual to act in a particular way or to pursue particular goals.

Intrinsically Motivated

Driven by internal rewards, meaning performing an action or behavior because it is personally rewarding.

Long-Term Goal

An objective set to be achieved in the future that requires time and planning beyond the immediate period.