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

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Definitions:

Price-Elasticity Of Demand

A way to quantify the effect price changes have on the demand for a good.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price within a specified period.

Price Elasticity Of Demand

A measure reflecting how price adjustments influence the demand quantity of a good.

Responsiveness

The quality of reacting quickly and positively, often used in contexts ranging from customer service to mobile or web design, indicating agility and attentiveness to needs or changes.