If the Hurdle Rate Is Greater Than the Internal Rate

question 103

Multiple Choice

If the hurdle rate is greater than the internal rate of return,the net present value will be:

• A)positive.
• B)negative.
• C)zero.
• D)equal to the hurdle rate.

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Definitions:

Individualist

A person who prioritizes personal goals over group goals, emphasizing independence and self-reliance.

Zajonc's Drive Theory

A psychological theory suggesting the presence of others (an audience) increases arousal, which can enhance the performance of well-learned tasks but impede the performance on complex or new tasks.

Social Facilitation

The phenomenon whereby an individual's performance improves when they are in the presence of others, typically due to increased arousal.

Dominant Response

The reaction or behavior that is most likely to be displayed by an individual in a given situation under pressure or stress.