If a Company Predicted Rate of Inflation Goes Down (Deflation),what

question 29

Multiple Choice

If a company predicted rate of inflation goes down (deflation) ,what happens to the net present value (NPV) of their projects?

• A)Goes up
• B)Unchanged
• C)Goes down
• D)Positive NPV's go up,negative NPV's go down

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Definitions:

Continuous Improvement

An ongoing effort to improve products, services, or processes by making incremental enhancements over time.

Scientific Management

A management theory that examines and integrates processes to enhance economic efficiency and increase worker productivity.

Total Quality Management

A comprehensive management approach focusing on continuous improvement in all functions of an organization with the aim of meeting or exceeding customer expectations.

Quantitative Management

Involves the application of mathematical models, statistical techniques, and computer simulations to improve decision-making processes and operational efficiency in businesses.