When Evaluated Using a Nominal Rate of 8%, the Net

question 82

Multiple Choice

When evaluated using a nominal rate of 8%, the net present value of a project is zero.Identify which one of the following statements is true.

• A)At 6% the project is desirable and at 8%, it is undesirable.
• B)At 8% the project is desirable and at 6%, it is undesirable.
• C)The project is desirable at 6% or 8%.
• D)The project is undesirable at 6% or 8%.

---

Definitions:

Premises Liability

The legal responsibility of property owners for accidents and injuries that occur on their property due to their negligence.

Possessors

Individuals or entities that have control over or hold property, but do not necessarily own it.

Real Estate

Property consisting of land and the buildings on it, along with its natural resources.

Social Guests

Individuals who are invited to visit someone's home or attend a private function or gathering without any expectation of providing a service or receiving payment.