Which of the Following Should Be Assumed About a Project

question 32

Multiple Choice

Which of the following should be assumed about a project that requires a $100,000 investment at time-period zero, then returns $20,000 annually for five years?

• A)the NPV is negative
• B)the NPV is zero
• C)the profitability index is 1.0
• D)the IRR is negative

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Definitions:

Limbic Lobe

The limbic lobe is a set of brain structures located on both sides of the thalamus, immediately beneath the cerebrum, involved in emotion, behavior, and long-term memory.

Autonomous Morality

The second stage in Piaget’s cognitive-developmental theory of moral development, in which children base moral judgments on the intentions of the wrongdoer and on the amount of damage done.

Objective Morality

The perception of morality as objective, that is, as existing outside the cognitive functioning of people.

Piaget's Theory

A theory of cognitive development that describes how children construct a mental model of the world through stages of learning.