Which of the Following Statements About Discount Rates Is False

question 78

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.

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Definitions:

Morphemes

Tiny grammatical elements within a language that bear significance.

Phonemes

Fundamental sound units within a language that help to distinguish different words.

Linguistic Heuristics

Cognitive shortcuts or rules of thumb used in language understanding and decision-making, relying on language patterns rather than systematic analysis.

Morphemes

The smallest grammatical units in a language that have semantic meaning.