The First Term in an NPV Calculation Is Usually

question 119

Multiple Choice

The first term in an NPV calculation is usually:

• A) positive, because firms consider only positive returns.
• B) positive, because interest charges do not accrue until the second period.
• C) zero, because interest charges do not accrue until the second period.
• D) negative, because funds for the project have to be borrowed up front before it is begun.
• E) negative, because the cost of the project is immediate, but revenue streams from the project come later.

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Definitions:

Lymphocytes

A subtype of white blood cell found in lymph that plays a crucial role in the immune response by identifying and neutralizing pathogens.

Self-antigens

Molecules present within an individual's own cells that are recognized by the immune system as belonging to the self, preventing an immune response against them.

Phagocytosis

A cellular process where cells engulf and digest particles or other cells.

Inflammation

A biological response to harmful stimuli, such as pathogens or damaged cells, leading to redness, swelling, pain, and heat in the affected tissues.