What Should Occur When a Project's Net Present Value Is

question 55

Multiple Choice

What should occur when a Project's net present value is determined to be negative?

• A)The discount rate should be decreased
• B)The profitability index should be calculated
• C)The present value of the project cost should be determined
• D)The project should be rejected

Identify the necessary rate of return to meet a specific financial goal.

Compare different investment or loan options based on their effective interest rates or returns.

Calculate the present value of a series of cash flows or an annuity.

Understand the concept and calculation of perpetuities.

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Definitions:

Object Permanence

Object permanence is the understanding that objects continue to exist even when they cannot be seen, heard, or touched.

Formal Operational

A stage in Piaget's theory of cognitive development, where individuals develop the ability to think abstractly and reason logically.

Object Permanence

The understanding that objects continue to exist even when they cannot be seen, heard, or touched, usually developed in infancy.

Developmental Stages

Distinct phases of growth or progression in physical, psychological, or intellectual development typical of certain age ranges in humans or other organisms.