A Capital Investment Has a Net Present Value of $1,000

question 36

Multiple Choice

A capital investment has a net present value of $1,000.00 at a required rate of return of 10%.At a 12% required rate of return,the net present value of the investment is $100.00.At a 14% required rate of return,the net present value of the investment is $0.The capital investment should be rejected if ________.

• A) the required rate of return exceeds 14%
• B) the required rate of return exceeds 12%
• C) the required rate of return is less than 14%
• D) the required rate of return is less than 12%

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Definitions:

Corporate Sustainability

An approach by businesses to create long-term value by considering how they operate in the ecological, social, and economic environment.

Sustainability

The practice of maintaining processes or systems in ways that ensure they can continue indefinitely without depleting resources or harming the environment.

Productivity Standards

are set benchmarks or metrics used to measure the efficiency and effectiveness of an employee's work output against predetermined targets.

UPS

United Parcel Service, a global shipping and logistics company known for its package delivery services and supply chain management solutions.