If Net Present Values Are Used to Evaluate Two Investments

question 140

True/False

If net present values are used to evaluate two investments that have equal costs and equal total cash flows, the one with more cash flows in the early years has the higher net present value.

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Definitions:

Opportunity Cost

Loss of potential earnings from different choices when one is picked.

Employment Discrimination

It refers to unfair or unequal treatment of an individual or group based on characteristics such as race, gender, age, religion, or disability in the workplace.

Underemployment

A situation in which workers are employed less than they wish or are overqualified for their jobs, resulting in their skills being underutilized.

Production Possibilities Frontier

A curve depicting the maximum viable combination of two products that can be produced in an economy, assuming all resources are fully and efficiently utilized.