As the Discount Rate Increases,the NPV of a Project

question 56

Multiple Choice

As the discount rate increases,the NPV of a project:

• A) increases.
• B) decreases.
• C) is unaffected.
• D) cannot be determined with out knowing the discount rate.

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Definitions:

Year 2

This term does not have a specific definition without context but generally refers to the second year of a given timeframe, study, or financial period.

Average Collection Period

The amount of time it typically takes for a business to receive payments owed by its customers, indicating the efficiency of a company's credit and collection policies.

Year 2

Typically refers to the second year of a specified period, often used in financial analysis to compare annual performance or growth.

Average Sale Period

The average time taken to sell a product or service, typically calculated over a specific time frame.