Which of the Following Changes,if of a Sufficient Magnitude,could Turn

question 85

Multiple Choice

Which of the following changes,if of a sufficient magnitude,could turn a negative NPV project into a positive NPV project?

• A) A decrease in the estimated annual sales
• B) An increase in the discount rate
• C) An increase in the initial investment
• D) A decrease in the fixed costs

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Definitions:

Bell-Shaped Curve

A graph describing the normal distribution, showing most instances occurring near the mean and fewer instances as one moves farther from the mean.

Intelligence

The ability to learn, understand, and apply knowledge, solve problems, and adapt to new situations.

Mental Age

A concept used to describe the intellectual capability of a person (often a child) compared to the average intellectual performance in their actual chronological age group.

Binet-Simon Scale

A tool developed in the early 20th century to measure an individual's intelligence and mental age.