Normal Projects S and L Have the Same NPV When

question 24

True/False

Normal Projects S and L have the same NPV when the discount rate is zero.However, Project S's cash flows come in faster than those of L.Therefore, we know that at any discount rate greater than zero, L will have the higher NPV.

---

Definitions:

Positive Pole

In electrical terminology, the terminal of a battery or device from which current flows out, having a higher electrical potential.

Muscle End Plate

A specialized area of muscle fiber membrane where a motor neuron terminates and transmits nerve impulses to the muscle, leading to contraction.

Neurotransmitter-activated Ion Channels

Ion channels that open in response to the binding of a neurotransmitter, allowing ions to enter or exit the neuron and alter its electrical charge.

Myasthenia Gravis

Myasthenia Gravis is an autoimmune disorder characterized by weakness and rapid fatigue of any of the muscles under voluntary control, caused by a breakdown in communication between nerves and muscles.