Henry Calculated That the Net Present Value of His Investment

question 21

Multiple Choice

Henry calculated that the net present value of his investment would be zero with a 15 percent internal rate of return.This means that:

• A) the project has no value.
• B) Henry can compare the 15 percent internal rate of return to the required rate of return to determine if the investment should be made.
• C) the project requires an additional 15 percent investment by the company.
• D) the project will break even in 15 years.

---

Definitions:

Effective Listener

An individual skilled in fully focusing on what others are saying, understanding the information being presented, and responding thoughtfully.

Receiving Element

A component or part that accepts or takes in signals, data, or substances in a mechanical system, electronic device, or biological organism.

Poor Acoustics

The aspect of a space that makes it hard to hear or understand sounds clearly, often due to echo or background noise.

Noise

Unwanted sound that can interfere with communication or distract from work.