Deflation in Prices Will Have a ________ Impact on the NPV

question 23

Multiple Choice

Deflation in prices will have a ________ impact on the NPV of a project by:

• A) negative; reducing the value of the future cashflows.
• B) zero; not being able to re-adjust your cashflow estimates.
• C) Negative; increasing the current cost of the investment.
• D) positive; increasing the value of future cashflows.

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Definitions:

Chemiosmosis

The movement of ions across a selectively permeable membrane, down their electrochemical gradient, which is used in cellular respiration and photosynthesis to generate ATP.

Oxidative Phosphorylation

A metabolic process that produces ATP by transferring electrons from NADH and FADH2 to oxygen via a series of electron carriers.

Glycolysis

Glycolysis is a metabolic pathway that breaks down glucose into pyruvate, generating small amounts of energy in the form of ATP.

Lactate Accumulation

The build-up of lactate in muscles during strenuous exercise when oxygen levels are low, often leading to fatigue.