After Appraisal of an Investment Opportunity, the Net Present Value

question 31

Multiple Choice

After appraisal of an investment opportunity, the Net Present Value was calculated as $3,000. This indicated that the project's return is:

• A)the opportunity rate.
• B)equal to the market rate of return.
• C)greater than the company's rate of return.
• D)greater than the discount rate used in the analysis.

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Definitions:

Expected Results

Anticipated outcomes or predictions made about future events or performances, often based on statistical analysis or forecasting methods.

Developing Products

The process of creating new products or significantly improving existing ones, which involves research, design, and development stages.

Diagonals

In geometry, straight lines connecting non-adjacent corners of a polygon or polyhedron. In finance, an options strategy combining different expiration dates and strike prices.

Verticals

Business units often structured as separate businesses within a parent company that develop products sold directly to consumers.