The Net Present Value of a Project Is Zero

question 12

Multiple Choice

The net present value of a project is zero.The minimum desired rate of return used to obtain the net present value is 8%.Which of the following statements is TRUE?

• A)The project is desirable if the minimum desired rate of return is 10%.
• B)The project is desirable if the minimum desired rate of return is 6%.
• C)The project is desirable if the minimum desired rate of return is 6% or 10%.
• D)The project is undesirable if the minimum desired rate of return is 6%.

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Definitions:

Individualism

An ideology that supports the preference of individual autonomy over the constraints of collective or governmental intervention.

Collectivism

A socio-cultural principle that prioritizes group goals over individual ones, emphasizing community, cooperation, and interdependence.

Personal Characteristics

Attributes or features that define an individual, including traits such as personality, attitudes, and abilities.

Individualism

A theory advocating for individual action freedom over group or governmental authority.