Which of the Following Statements Is True of a Project

question 54

Multiple Choice

Which of the following statements is true of a project whose cash flows accrue relatively rapidly?

• A) The payback period is longer than the years expected to recover the original investment.
• B) The net present value is not very sensitive to changes in the discount rate.
• C) The required rate of return is revised throughout the duration of the project.
• D) The net present value of the project is always negative if cash flows accrue rapidly.
• E) The project will have multiple internal rates of return due to rapidly accruing cash flows.

---

Definitions:

Centigrade

A temperature scale also known as Celsius, where 0 degrees is the freezing point of water and 100 degrees is the boiling point at standard atmospheric pressure.

Fahrenheit

A temperature scale where water freezes at 32 degrees and boils at 212 degrees under standard conditions.

Fifth Vital Sign

Often refers to pain level as an additional vital sign to temperature, pulse, respiration, and blood pressure, emphasizing its importance in patient assessments.

Pain Scale

A tool used by healthcare providers to help assess a patient's pain intensity or changes in pain.