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:

Cost Analyses

Evaluation of the costs associated with a project or program, in relation to its expected benefits, to determine its economic viability.

Program Effective

Pertaining to the success or impact of a program in achieving its intended outcomes.

Biggest Bang

Biggest Bang refers to achieving the maximum benefit, impact, or value from the least amount of resources or effort, often used in the context of decision-making to prioritize actions that yield the greatest returns.

Specialized Training

Instruction or education focusing on a specific area or skill set, often to prepare individuals for particular roles or professions.