If a Firm Undertakes a Project with Ordinary Cash Flows

question 8

Multiple Choice

If a firm undertakes a project with ordinary cash flows and estimates that the firm has a positive NPV, then the IRR will be:

• A) less than the cost of capital.
• B) greater than the cost of capital.
• C) greater than the cost of the project.
• D) cannot be determined from this information

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Definitions:

Primary Reinforcers

A type of reinforcement that is innately satisfying and does not require any learning to become pleasurable, such as food and water.

Secondary Reinforcers

Stimuli which become rewarding through their association with primary reinforcers.

Shaping

A method of behavior training in which reinforcement is given for progressively closer approximations of the desired behavior.

Classically Conditioned

A learning process that occurs through associations between an environmental stimulus and a naturally occurring stimulus.