If the NPV for a Project Is Positive It Must

question 105

Multiple Choice

If the NPV for a project is positive it must be that

• A) the discounted payback period is longer than the useful life of the project.
• B) the internal rate of return is lower than the discount used.
• C) the project is not acceptable on a risk adjusted basis.
• D) this project is preferred to any other mutually exclusive project.
• E) accepting the project increases the value of the firm.

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Definitions:

Phonological Loop

A component of working memory involved in the temporary storage and manipulation of verbal and auditory information.

Acquisition

The initial phase of learning in which a response is established, typically seen in conditioning contexts where the association between stimuli and responses is being formed.

Procedural Memory

Refers to a type of implicit memory that involves motor skills and behavioral habits.

Sensory Memory

The shortest-term element of memory, it allows the ability to retain impressions of sensory information after the original stimuli have ended.