When Using the NPV Method, the Interest Rate Used to Discount

question 41

Multiple Choice

When using the NPV method, the interest rate used to discount cash flows shouldnot be thought of as the:

• A) hurdle rate.
• B) internal rate of return.
• C) minimum required rate of return.
• D) discount rate.

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Definitions:

Throat

The anterior part of the neck, housing the pharynx and vocal cords, and leading to the esophagus and larynx.

Pharynx

The muscular tube that connects the mouth and nasal passages with the esophagus and larynx, serving both respiratory and digestive functions.

Esophagus

The muscular tube connecting the throat (pharynx) with the stomach, responsible for moving swallowed foods and liquids.

Mouth

The opening in the body of most animals through which food is ingested.