The Present Value Ratio of a Proposed Investment Will Be

question 31

Multiple Choice

The present value ratio of a proposed investment will be:

• A) less than 1.0 if the net present value is positive.
• B) negative if the proposed investment meets the cost of capital target.
• C) less than 1.0 if the net present value is negative.
• D)greater than 1.0 if the cost of capital exceeds the internal rate of return.

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Definitions:

Amphibian Heart

A three-chambered heart found in amphibians that consists of two atria and one ventricle, partially separating oxygenated and deoxygenated blood.

Oxygen-Rich

Referring to environments or substances with a high concentration of oxygen, such as certain atmospheric layers or oxygenated blood.

Oxygen-Poor

This term describes environments or situations where there is a deficiency of oxygen, often leading to anaerobic conditions.

Lateral Line System

A system of sense organs found in aquatic vertebrates, used to detect movement and vibration in the surrounding water.