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:

Situational Contingencies

External factors or conditions that influence the outcome of a decision or action, suggesting that the effectiveness of a response may depend on the specific circumstances.

Authoritarian Personality

A personality type characterized by adherence to strict obedience and control over those perceived as lower in status, often valuing order and tradition over freedom.

Dogmatic

Characterized by strong belief in the unquestioned correctness of one's opinions, often without consideration of evidence or other viewpoints.

External Locus of Control

is a belief system where individuals think that their success or failure is due to external factors beyond their control.