If the Present Value of an Investment's Benefits Equals the Present

question 5

Multiple Choice

If the present value of an investment's benefits equals the present value of the investment's costs, then the investor would earn a

• A) return equal to the discount rate.
• B) negative rate of return.
• C) 0% rate of return.
• D) return greater than the discount rate.

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Definitions:

Oliver Wendell Holmes

A prominent American jurist and Supreme Court Justice known for his contributions to legal theory and the development of American common law.

National Association of Colored Women

An organization formed in 1896 in the United States, focused on promoting civil rights and improving the conditions for African-American women and their families through education, job training, and community service.

Lynchings

Extrajudicial killings, usually by hanging, performed by a mob with the intention of enforcing justice, revenge, or intimidation without legal trial.

Nurseries

Facilities or spaces where young plants and trees are cultivated and grown before being transplanted to their final location.