If the Net Present Value Is Positive, It Could Signal

question 23

Multiple Choice

If the net present value is positive, it could signal

• A) a return in excess of the initial investment or required rate of return has been received.
• B) the required rate of return has not been achieved.
• C) the initial investment has not been recovered.
• D) a decrease in wealth for the firm.

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Definitions:

Social Loafing

The phenomenon where individuals in a group or team exert less effort towards achieving a goal than when they work alone.

Group's Efforts

Collective actions and endeavors taken by a group of individuals working together towards a common goal or objective.

Norms of Behavior

Established standards or rules within a group or society that dictate the expected or acceptable ways of behaving.

Work Group

A collection of individuals who come together to achieve a specific goal or task, but may not necessarily function as a cohesive, integrated unit.