Which of the Following Statements About Discount Rates Is False

question 57

Multiple Choice

Which of the following statements about discount rates is false?

• A) A discount rate for computing NPV cannot change from one period to the next.
• B) The discount rate for a risky investment should be higher than the discount rate for a risk-free investment.
• C) Discount rates can be applied either to the cash flow from a transaction or the taxable income from a transaction.
• D) Both a discount rate for computing NPV cannot change from one period to the next and discount rates can be applied either to the cash flow from a transaction or the taxable income from a transaction.

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Definitions:

Lower Self-esteem

Refers to a lower assessment or evaluation of one's own worth or abilities, often associated with various mental health challenges.

Fear of Failure

An apprehension or anxiety about failing to achieve a goal or succeed in a task, which can inhibit risk-taking and limit opportunities.

Coping

The process of managing stressful or challenging situations by making efforts to solve problems or adjust to circumstances.

Grit

The combination of passion and perseverance towards long-term goals, regardless of obstacles or failures.