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:

Set of Data

A collection of numbers or values that are usually related and can be analyzed statistically.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much the values in a data set differ from the mean.

Set of Data

A set of data refers to a collection of data points or values gathered from observations, experiments, or surveys, used for analysis.

Population Standard Deviation

A metric indicating how spread out a dataset is from its average, computed for the whole population.