What is the fundamental question that must be answered during an investment appraisal?
A) What are the cash flow implications?
B) What is the time value of the money invested?
C) Is the proposed course of action wealth creating?
D) Is the proposed course of action profitable?

Question

Quizplus · Accepted Answer

The fundamental question that must be answered during an investment appraisal is whether the proposed course of action is wealth creating. This means that the investment should generate positive net present value, that is, the discounted cash inflows should be greater than the discounted cash outflows. The other options are important considerations during investment appraisal, but they are not the fundamental question that needs to be answered.

What Is the Fundamental Question That Must Be Answered During