For a Particular Investment Project, the Present Value of the Benefits

question 8

Multiple Choice

For a particular investment project, the present value of the benefits is exactly equal to the present value of the investment. Given this, which of the following statements is true?

• A) The net present value is positive
• B) The internal rate of return is less than the required rate of return
• C) The profitability index is less than one
• D) The project is acceptable

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Definitions:

Alarm Phase

The initial reaction of the body to stress, activating the sympathetic nervous system and the release of stress hormones.

North American Men

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A complex psychological state that involves a subjective experience, physiological response, and behavioral or expressive response.

Hans Selye

A pioneering Hungarian-Canadian endocrinologist who is known for his research on the stress response and for introducing the concept of stress in medical research.