If the Net Present Value of an Investment Project Is

question 15

Multiple Choice

If the net present value of an investment project is positive,then the project is ________.If the net present value of an investment project is negative,then the project is ________.

• A) ignored; accepted
• B) desirable; undesirable
• C) unacceptable; acceptable
• D) rejected; accepted

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Definitions:

1933 Act

Also known as the Securities Act of 1933, it's a U.S. law enacted to ensure that investors receive significant information regarding securities being offered for public sale, and to prevent deceit, misrepresentations, and other frauds in the sale of securities.

State Court

A court that has jurisdiction over disputes with some connection to a U.S. state, as opposed to the federal court system.

Section 16(b)

A provision of the Securities Exchange Act that aims to prevent unfair use of nonpublic information by requiring insiders to return any profits made from buying and selling their company's stock within a short time frame.

1934 Act

A federal statute that provides for the regulation of the securities industry, including the creation of the Securities and Exchange Commission.