If the Net Present Value of an Investment Is Negative,then

question 10

Multiple Choice

If the net present value of an investment is negative,then:

• A) the present value of the cash inflows is greater than the present value of the cash outflows.
• B) the discount rate is negative.
• C) the actual rate of return is less than the minimum required rate of return.
• D) increasing the cost of the investment will change the net present value to a positive number.

---

Definitions:

Stress

A condition of psychological stress or pressure stemming from difficult or challenging situations.

Symptoms

Physical or mental features indicating a condition or disease, experienced by an individual.

Disease

A disorder of structure or function in a human, animal, or plant, especially one that produces specific symptoms or affects a specific location and is not simply a direct result of physical injury.

Differential Diagnosis

A process by which a doctor distinguishes between diseases with similar symptoms to identify the patient's specific illness.