A Project's Net Present Value Is Increased If

question 174

Multiple Choice

A project's net present value is increased if

• A)the CCA rate is decreased.
• B)the discount rate is increased.
• C)the CCA rate is increased.
• D)the company's net income is negative during the life of the project.
• E)the rate of inflation rises.

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Definitions:

Mutually Exclusive

Two or more events that cannot happen at the same time; the occurrence of one event precludes the occurrence of the other(s).

Nonzero Probabilities

Probabilities that are greater than zero, indicating that an event has a chance of occurring.

Sample Space

The set of all possible outcomes or results in an experiment or a random trial.

Experimental Outcomes

The possible results that can occur from a planned experimental procedure, each outcome being a unique result of the experiment.