Which of the Following Statements About Discount Rates Is False

question 38

Multiple Choice

Which of the following statements about discount rates is false?

• A) A discount rate for computing NPV cannot change from one period to the next.
• B) The discount rate for a risky investment should be higher than the discount rate for a risk-free investment.
• C) Discount rates can be applied either to the cash flow from a transaction or the taxable income from a transaction.
• D) Statements A. and C. are false.
• E) are false.

---

Definitions:

\(34\)

An integer and natural number following 33 and preceding 35.

\(k ^ { 3 }\)

Represents the cube of a variable \(k\), equivalent to multiplying \(k\) by itself twice (\(k*k*k\)).

\(k + 8\)

An algebraic expression representing the sum of a variable, \(k\), and the number 8.