A Project Has a Net Present Value of $1,200 and a Project

question 5

Multiple Choice

A project has a net present value of $1,200 and a project life of 4 years.Which one of these statements must be true?

• A)The project's total cash inflows minus its cash outflows equals $1,200.
• B)The project is expected to return $1,200 in Time 0 dollars over and above the discount rate.
• C)The project would also have a positive net present value if Year 4 was omitted.
• D)The project's cash inflows exceed its outflows by $1,200 over the 4 years.
• E)The project is expected to return $1,200 in Year 4 dollars over and above the initial investment.

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Definitions:

Social Cognition

The study of how people process, store, and apply information about others and social situations.

Self-Regulation

Self-regulation involves individuals controlling their own behavior, emotions, and thoughts towards achieving long-term goals, often requiring self-discipline and cognitive strategies to align actions with personal and professional standards.

Social Cognitive Theory

is a theoretical framework that emphasizes the importance of observational learning, self-efficacy, and social influences on behavior.

Prominent Model

A well-known or widely acknowledged framework or theory that is used to explain aspects of a particular field of study or practice.