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If in Evaluating a Proposal by Use of the Net

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If in evaluating a proposal by use of the net present value method there is an excess of the present value of future cash inflows over the amount to be invested, the rate of return on the proposal is less than the rate used in the analysis.

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Definitions:

Class

In the context of data, a grouping or categorization according to shared characteristics; in education, an organized period of instruction.

Simple Events

Events that cannot be broken down any further into simpler components in the context of probability.

Probabilities

The measure of the likelihood that an event will occur, often quantified as a number between 0 and 1.

Simple Events

An event in probability that consists of only one outcome or occurrence and cannot be broken down further.

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