Consider a Project with an Initial Investment and Positive Future

question 233

Multiple Choice

Consider a project with an initial investment and positive future cash flows. As the discount rate is increased the ___________________.

• A) IRR remains constant while the NPV increases
• B) IRR decreases while the NPV remains constant
• C) IRR remains constant while the NPV decreases
• D) IRR increases while the NPV remains constant
• E) IRR decreases while the NPV decreases

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Definitions:

Cognitive-Developmental Theory

A theory in psychology that explains how children acquire the ability to think, reason, and use language as they grow.

Moral Reasoning

The process of determining right from wrong in a logical, principled manner.

Social Learning Theory

A theory that posits people learn new behaviors and information by observing and imitating others, also taking into account the reinforcements or punishments that follow these behaviors.

Private Speech

The self-directed speech of children that is used to guide their own thoughts and behavior, often seen in the context of learning or problem-solving.