You Have Determined the Profitability of a Planned Project by Finding

question 81

Multiple Choice

You have determined the profitability of a planned project by finding the present value of all the cash flows from that project.Which of the following would cause the project to look more appealing in terms of the present value of those cash flows?

• A) The discount rate decreases.
• B) The cash flows are extended over a longer period of time, but the total amount of the cash flows remains the same.
• C) The discount rate increases.
• D) The cash flows occur over the same time period and total the same amount, but the cash flows are larger toward the end of the project.
• E) The cash flows are extended over a longer period of time and the total amount of the cash flows remains the same, but the cash flows are larger toward the end of the project.

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Definitions:

Metro Group

A global diversified retail and wholesale/cash and carry group, focusing on food and general merchandise but also offering a variety of services.

CarMax

An American used car retailer known for a no-haggle buying and selling process, offering a large inventory of vehicles.

No-Haggle

A sales strategy where the seller sets a fixed price for a product or service, eliminating negotiation on the price.

Sales Policy

A set of guidelines and directives that govern how sales operations and activities are conducted within an organization.