A Firm Is Evaluating a Project That Has a Net

question 10

Multiple Choice

A firm is evaluating a project that has a net present value of $0 when a discount rate of 8 percent is used.A discount rate of 6 percent will result in a

• A)negative net present value.
• B)positive net present value.
• C)net present value of $0.
• D)The question cannot be answered based upon the information provided.

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Definitions:

Telegraph

An early form of long-distance communication technology that transmitted messages in the form of electrical signals.

Union Forces

Refers to the military forces of the United States (the North) during the American Civil War, fighting against the Confederate States.

Territory

A defined geographical area under the jurisdiction of a political entity or state.