The Xu Corp

question 145

Multiple Choice

The Xu Corp. is considering making an investment that costs $10 million. It expects to receive cash inflows of $3 million per year for eight years. The interest rates right now in the market are 5%. If interest rates rise to 6%, then:

• A) The net present value of this investment would stay the same
• B) The net present value of this investment would increase
• C) The net present value of this investment would decrease

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Definitions:

Anti-war Movement

Social movements, typically during periods of military conflict, that advocate for peace and are against the initiation or continuation of armed conflict.

Vietnam War

A prolonged conflict (1955-1975) between communist forces in North Vietnam, supported by its allies, and the government of South Vietnam, backed by the United States.

President Kennedy

John F. Kennedy, the 35th President of the United States, served from January 1961 until his assassination in November 1963.

Civil Rights Movement

A decades-long struggle, primarily during the 1950s and 1960s, by African Americans to end racial discrimination and gain equal rights under the law in the United States.