The Net Present Value Always Provides the Correct Decision Provided

question 100

Multiple Choice

The net present value always provides the correct decision provided that

• A) cash flows are constant over the asset's life.
• B) the required rate of return is greater than the internal rate of return.
• C) capital rationing is not imposed.
• D) the internal rate of return is positive.

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Definitions:

Pop Quizzes

Surprise tests given without prior notice to assess or reinforce learning in an educational setting.

Fixed-interval

A type of schedule in operant conditioning where a response is rewarded only after a specified amount of time has elapsed, leading to a pattern of response.

Variable-interval

Variable-interval describes a schedule of reinforcement where a response is rewarded after an unpredictable amount of time has passed, in operant conditioning.

Classical Conditioning

A method of learning in which two stimuli are consistently associated; the response initially produced by the second stimulus ultimately becomes triggered by just the first stimulus alone.