Which One of These Is a Requirement When Computing the Net

question 61

Multiple Choice

Which one of these is a requirement when computing the net present value of a capital project?

• A)The discount rate used must be a nominal rate.
• B)The discount rate must be stated in real terms.
• C)Nominal cash flows must be discounted using a real rate.
• D)Real cash flows must be converted to nominal cash flows.
• E)Real cash flows must be discounted using a real rate.

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Definitions:

Social Anxiety

Social anxiety is a form of anxiety that manifests as a fear of social situations, causing significant distress and impairing an individual's ability to function in various aspects of life.

Symptoms

Signs or indicators of a disease, disorder, or other physical or psychological condition, often experienced by the individual.

Intervention

The action or process of intervening, which may involve direct involvement in a situation to alter an outcome or prevent a problem.

Prevention

Actions or measures taken to stop something undesirable from happening, such as disease or accidents.