As Long as the NPV of a Project Declines Smoothly

question 66

Multiple Choice

As long as the NPV of a project declines smoothly with increases in the discount rate,the project is acceptable if its:

• A) internal rate of return is positive.
• B) payback period is greater than one.
• C) rate of return exceeds the cost of capital.
• D) cash inflows equal the initial cost.

---

Definitions:

Sensation

The process of receiving stimulus energies from the external environment and transforming those energies into neural energy.

Cerebral Cortex

The outer layer of neural tissue of the cerebrum of the brain, involved in multiple high-level functions like perception, thought, and memory.

Parietal Lobes

Regions of the brain located behind the frontal lobes that are responsible for processing sensory information from various parts of the body, understanding spatial orientation, and managing navigation.

Occipital Lobes

Structures located at the back of the head that respond to visual stimuli.