As Long as the NPV of a Project Declines Smoothly

question 70

Multiple Choice

As long as the NPV of a project declines smoothly with increases in the discount rate, the project is acceptable if its:

• A)Internal rate of return is positive
• B)Net present value does not equal zero
• C)Rate of return exceeds the cost of capital
• D)Cash inflows exceed the initial cost

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Definitions:

Volute

A spiral, scroll-like form characteristic of the ancient Greek Ionic and the Roman Composite capital.

Ionic

One of the two systems (or orders) invented in ancient Greece for articulating the three units of the elevation of a classical building: the platform, the colonnade, and the superstructure (entablature). The Ionic order is characterized by, among other features, volutes, capitals, columns with bases, and an uninterrupted frieze. See also Doric.

Greek Column Capital

The topmost element of a column in Greek architecture, varying in design - Doric, Ionic, or Corinthian - and serving both structural and decorative purposes.

Athenian White-Ground Lekythos

A type of ancient Greek vase, often used for storing oil, distinguished by its white background and detailed figural decoration.