Including flOtation Costs into the Net Present Value of a Project

question 200

Multiple Choice

Including flotation costs into the net present value of a project will:

• A) Not affect that net present value.
• B) Increase the net present value of the project.
• C) Increase the discount rate applied to the project thereby lowering the project's net present value.
• D) Increase the initial cash outflow of the project thereby lowering the project's net present value.
• E) Affect the net present value but the direction of that impact cannot be determined.

---

Definitions:

Skin Sensations

Feelings perceived through the skin, including touch, pressure, heat, cold, and pain, mediated by the nervous system.

Pressure

The feeling of stressful urgency caused by the perception of the need to perform well in a situation or accomplish a task.

Color Constancy

The perceptual property by which the color of an object appears the same under varying lighting conditions.

Sunglasses

Eyewear designed to protect the eyes from excessive sunlight and UV rays.