An Investment Should Be Accepted If ________

question 67

Multiple Choice

An investment should be accepted if ________.

• A) it has positive total cash inflows
• B) it has a payback period in less than 10 years
• C) the investment's rate of return is lower than the company's current year required rate of return
• D) the net present value is positive

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Definitions:

Converter/Cooler/Lubrication

A system in engines or transmissions that converts power, removes heat, and reduces friction to enhance performance and longevity.

Oil Circuit

A system designed for the circulation of oil to various parts of a machine or engine for lubrication and cooling purposes.

Pressure Regulator Valve

A valve that automatically cuts off the flow of a liquid or gas at a certain pressure to maintain the desired pressure level in a system.

Friction Discs

The driven discs in a clutch pack. Most heavy-duty truck chassis use double friction discs. These would be clamped between the clutch pressure plate/intermediate plate/flywheel when the clutch was engaged.