As the Discount Rate Is Increased,the NPV of a Specific

question 59

Multiple Choice

As the discount rate is increased,the NPV of a specific project will:

• A) increase.
• B) decrease.
• C) remain constant.
• D) decrease to zero, then remain constant.

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Definitions:

Stable Across Time

A characteristic or attribute that remains consistent and unchanged over a period.

Ergs

In psychology, often considered an outdated term for the basic drives or instincts that motivate human behavior, such as hunger, thirst, and sex.

Source Traits

Fundamental personality attributes identified by Raymond Cattell that underlie and give rise to surface behaviors.

Ergs

A unit of energy in the centimeter-gram-second (CGS) system, used to measure the amount of work or energy.