If a Project Is Assigned a Required Rate of Return

question 6

Multiple Choice

If a project is assigned a required rate of return of zero,then:

• A)the timing of the project's cash flows has no bearing on the value of the project.
• B)the project will always be accepted.
• C)the project will always be rejected.
• D)whether the project is accepted or rejected will depend on the timing of the cash flows.
• E)the project can never add value for the shareholders.

---

Definitions:

Stimulus Presentation

The method or manner in which a stimulus is shown to a participant in a study, affecting their reactions or responses.

Milliseconds

A unit of time equal to one thousandth of a second, often used to measure the time of quick processes or reactions.

Attention Hypothesis

A theory suggesting that the ability to pay attention to specific stimuli or tasks is a critical factor in cognitive performance and learning.

Automatization

The process by which a task becomes automatic after extensive practice, requiring less cognitive effort to perform.