As the Required Rate of Return Increases, The

question 385

Multiple Choice

As the required rate of return increases, the:

• A) Net present value increases.
• B) Payback period decreases.
• C) Profitability index decreases.
• D) Discounted payback period decreases.
• E) Average accounting return decreases.

---

Definitions:

Sympathetic

Relating to the part of the autonomic nervous system that typically prepares the body for action in threatening situations.

Endothermic Animals

Animals that are able to regulate their body temperature through internal mechanisms, regardless of the external environmental temperature.

Ectothermic Animals

Organisms that rely on external sources of heat to regulate their body temperature.

Vasoconstriction

The narrowing of blood vessels, which increases blood pressure by reducing the volume of space for blood flow.