Assume You Computed the NPV of a Project Using Nominal

question 33

Multiple Choice

Assume you computed the NPV of a project using nominal values.Your partner computed the NPV of the identical project using real values,given a positive rate of inflation.When you compare your results,you should discover that

• A)the discount rate used by your partner is higher than the rate you used.
• B)both computations used the identical discount rate.
• C)your NPV value is greater than your partner's NPV value.
• D)your partner's initial cash flow at Time 0 is less than the value you used for Time 0.
• E)your NPV values are identical.

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Definitions:

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The process of paying attention to one's own behavior and responses in various situations to adjust and control one's actions and presentations based on the social context.

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The process of growth and maturation of the brain, involving aspects like neural development, synaptic pruning, and myelination, typically most active during early childhood and adolescence.

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