If a Project Has a Net Present Value Equal to Zero,then

question 84

Multiple Choice

If a project has a net present value equal to zero,then:

• A)the total of the cash inflows must equal the initial cost of the project.
• B)the project earns a return exactly equal to the discount rate.
• C)a decrease in the project's initial cost will cause the project to have a negative NPV.
• D)any delay in receiving the projected cash inflows will cause the project to have a positive NPV.
• E)the project's PI must be also be equal to zero.

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Definitions:

Norms

Shared expectations or rules within a social group that guide behavior and indicate what is considered appropriate or acceptable.

Society

A community of people living together in a more or less organized way, establishing norms and institutions that define the collective social behavior.

Executive Control Centre

A component of the brain responsible for regulating attention, problem-solving, and adaptable behavior in complex situations.

Prefrontal Cortex

The frontal part of the brain involved in complex behaviors such as planning, decision making, and moderating social behavior.