If the Discount Rate Increases

question 37

Multiple Choice

If the discount rate increases:

• A) There will be no impact on the net present value
• B) The annual cash inflows will need to increase in order to retain the same net present value
• C) The present value of future cash flows will increase
• D) The internal rate of return requirement will increase

---

Definitions:

Emotional Engagement

The emotional connection and response that a consumer has with a brand, which can influence loyalty and purchasing behavior.

Self-Identification

The process by which an individual defines and understands themselves, often in relation to categories such as gender, race, or religion.

Cultural Competence

The ability of an individual or organization to understand, communicate with, and effectively interact with people across cultures.

Auxiliary Consumption

refers to the additional energy or resources used by devices or processes not directly involved in the primary function, often in standby or supporting modes.