A Firm Is Evaluating a Project That Has a Net

question 115

Multiple Choice

A firm is evaluating a project that has a net present value of $0 when a discount rate of 9 percent is used. A discount rate of 7 percent will result in a

• A)negative net present value.
• B)positive net present value.
• C)net present value of $0.
• D)the question cannot be answered based upon the information provided.

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Definitions:

Fear

An unpleasant emotion caused by the belief that someone or something is dangerous, likely to cause pain, or a threat.

Internal Locus

Refers to the belief that one has control over their life and outcomes, attributing success to personal abilities and efforts.

External Locus

A belief that one's life outcomes are generally determined by external forces or circumstances beyond personal control.

Self-Actualized Potential

The realization or fulfillment of one's talents and potentialities, considered as a drive or need present in everyone.