Net Present Value Will Be Greater

question 30

Multiple Choice

Net present value will be greater:

• A) as a fixed set of cash receipts occurs later rather than earlier.
• B) if the future value of a cash flow is smaller.
• C) for twelve monthly receipts of $100 each than for one end-of-year receipt of $1200.
• D) for a 6% discount rate than for a 4% discount rate.
• E) All of these are true.

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Definitions:

Withdrawal

A physical and psychological aspect of addiction that occurs when a person experiences anxiety, tension, and cravings after stopping use of an addictive drug.

Tolerance

A physical aspect of addiction that occurs when a person needs to take larger doses of a drug to experience its effect.

Psychological Dependence

The emotional or mental attachment to a substance, behavior, or habit, characterized by a perceived need for the substance or behavior to function normally.

Withdrawal

The process or action of removing oneself from a harmful situation, substance abuse habit, or social engagement.