In order for an investment project to be profitable
A) the appropriately discounted return on the investment must be greater than the investment's cost.
B) the appropriately discounted return on the investment must be less than the investment's cost.
C) the appropriately discounted return on the investment must be greater than the appropriate interest rate.
D) the appropriately discounted return on the investment must be less than the appropriate interest rate.

Question

Quizplus · Accepted Answer

For an investment project to be considered profitable, the present value of the returns (appropriately discounted) must exceed the initial cost of the investment. This ensures that the investment generates a positive net present value (NPV), indicating profitability.

In Order for an Investment Project to Be Profitable