Which of the Following Situations Suggests the Acceptance of an Investment

question 3

Multiple Choice

Which of the following situations suggests the acceptance of an investment proposal?

• A) The present value of the net cash inflows exceeds the initial investment.
• B) The IRR is lower than the hurdle rate.
• C) The cash inflows are less than the initial investment.
• D) The investment will have a residual value.

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Definitions:

Community Wealth Partners

An organization or initiative focused on creating and implementing strategies that build and sustain wealth within communities, often through social and economic development projects.

Social Entrepreneurship

A form of entrepreneurship that aims to solve social problems or meet community needs through innovative business models.

Social Businesses

Companies designed to address social problems with commercial strategies while reinvesting profits back into their missions.

Yunus

Refers to Muhammad Yunus, a Bangladeshi social entrepreneur, banker, and economist known for founding the Grameen Bank and pioneering concepts of microcredit and microfinance.