Riskier Projects Should Be Harder to Accept Than Others with Similar

question 77

Multiple Choice

Riskier projects should be harder to accept than others with similar cash flows. This is accomplished by:

• A)Using higher discount rates which will lower the NPV of the project.
• B)Using lower discount rates which will lower the NPV of the project.
• C)Using higher discount rates which will increase the NPV of the project.
• D)Using lower discount rates which will increase the NPV of the project.

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Definitions:

Codes of Behaviour

Established rules or standards governing the actions or conduct of individuals within a group or society.

Internal Social Control

Regulates people through socialization and shapes people’s minds so they come to regard deviant actions as undesirable.

Importance of Learning

The significance attached to acquiring knowledge and skills, emphasizing its role in personal development, career advancement, and societal progress.

Grounding

In a psychological context, it refers to techniques used to bring someone fully into the present and calm the mind, often used in managing anxiety or stress.