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:

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The ongoing sequence of events taking place from past through present to future, measurable in units such as seconds, minutes, and hours.

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A medication used to reduce pain, fever, or inflammation.