What Effect Does an Increased Discount Rate Have on Project

question 53

Multiple Choice

What effect does an increased discount rate have on project evaluations?

• A)Increases net cash flow
• B)Decreases net cash flow
• C)Increases the probability that a project will be accepted
• D)It has no effect on project evaluation

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Definitions:

Infatuation

A state of intense, often short-lived passion or admiration for someone or something.

In-group Bias

The tendency for people to give preferential treatment and exhibit more positive attitudes towards members of their own group over those of an out-group.

Out-group Bias

A cognitive bias that leads individuals to favor their own group over others, often resulting in prejudice and discrimination against the out-group.

Scapegoating

Blaming a person or group for problems or negative outcomes, often as a way of distracting from the real causes or issues.