When the Present Value of the Cash Inflows Exceeds the Initial

question 97

Multiple Choice

When the present value of the cash inflows exceeds the initial cost of a project,then the project should be:

• A)accepted because the internal rate of return is positive.
• B)rejected because the net present value is negative.
• C)rejected because the internal rate of return is negative.
• D)accepted because the profitability index is negative.
• E)accepted because the profitability index is greater than 1.

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Definitions:

Substantia Nigra

A region in the brain involved in reward and movement, notable for its role in Parkinson's disease where its dopamine-producing neurons degenerate.

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Amygdala

A region of the brain involved in experiencing emotions, such as fear and pleasure, and in forming emotional memories.

Experiencing Rage

A psychological state characterized by intense anger or fury, often with physiological reactions such as increased heart rate and adrenaline surge.