When the Present Value of the Cash Inflows Exceeds the Initial

question 60

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

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Definitions:

Obsessive-compulsive Disorders

Mental illnesses marked by an individual's engagement in repetitive thoughts and behaviors that are performed to alleviate anxiety or distress.

Anal Development

In psychoanalytic theory, a stage of early child development centered on the control of bowel movements, which can influence personality traits.

Compulsive Behaviors

Actions repeatedly performed by an individual, driven by an uncontrollable urge, often as a response to obsessive thoughts, leading to distress or impairment in functioning.

Cognitive-behavioral Theorists

Specialists in a psychological approach that focuses on changing maladaptive thoughts and behaviors to improve emotional regulation and develop personal coping strategies.