Using a Higher Risk Adjusted Discount Rate Makes NPV Smaller

question 113

True/False

Using a higher risk adjusted discount rate makes NPV smaller so projects are less likely to be accepted. But a higher rate has no effect on the computed value of IRR and therefore doesn't make any difference to the likelihood of project acceptance.

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Definitions:

Clarity

The quality of being clear, understandable, and free from ambiguity, especially in expression or presentation.

Sex Reassignment Surgery

Surgical procedures that alter a person's physical anatomy to match their gender identity, often part of gender transition.

Gender Role

Socially constructed roles, behaviors, activities, and attributes that a given society considers appropriate for men and women.

Living Fulltime

The experience or practice of fully engaging in an activity or identity on a continuous basis, often used in the context of gender transitioning.