As the Discount Rate Increases,the NPV of a Project

question 74

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:

Anthropoids

A subgroup of primates, including humans, apes, and most monkeys, characterized by higher brain development and more complex behaviors.

Tarsiers

A genus of small, nocturnal primates with large eyes and long tails, found in Southeast Asia.

Anatomically Modern

Describing human beings that resemble modern humans in terms of skeletal structure and morphology, with features distinct from earlier forms of human ancestors.

H. Sapiens

Homo sapiens, the species name for modern humans, characterized by bipedalism and complex brain development.