As Long as the NPV of a Project Declines Smoothly

question 125

Multiple Choice

As long as the NPV of a project declines smoothly with increases in the discount rate, the project is acceptable if its:

• A)internal rate of return is positive.
• B)net present value does not equal zero.
• C)rate of return exceeds the cost of capital.
• D)cash inflows exceed the initial cost.

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Definitions:

Handsome

Attractively good-looking, often used to describe men but can apply to anyone.

Anorexia Nervosa

An eating disorder characterized by an obsessive fear of gaining weight, leading to severe restriction of food intake and weight loss.

Over-controlling

An excessive need to control situations or others' behavior, which can lead to interpersonal difficulties and stress.

Compliance

The act of conforming to or following the rules, standards, or orders from an authority.