If a Project Has a Net Present Value of £0

question 20

Multiple Choice

If a project has a net present value of £0 when a discount rate of 10 per cent is used, what can be concluded about the rate of return of the project?

• A)The rate of return is greater than 10 per cent.
• B)The rate of return is less than 10 per cent.
• C)The rate of return equals 10 per cent.
• D)The rate of return is 0.

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Definitions:

Peripheral Route Persuasion

A method of persuasion that relies on superficial cues or endorsements, rather than logical argument, to influence opinions or attitudes.

Offering Evidence

The act of providing information, facts, or data to support a claim, argument, or hypothesis.

Unimportant Cues

Signals or pieces of information that are deemed irrelevant or not significant to the task or situation at hand.

Personal Traits

Characteristics or qualities that form an individual's distinctive character.