Using the NPV Method Which Factor Is Not Relevant in Determining

question 21

Multiple Choice

Using the NPV method which factor is not relevant in determining the discount rate?

• A)the rate of inflation
• B)risk
• C)the number of years the firm has been in business
• D)opportunity cost

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Definitions:

Tranquilizers

Medications designed to reduce tension or anxiety without inducing sleep.

Nocebos

Negative health effects that result from the mere belief or expectation that something is harmful, even if it contains no active ingredients or harmful properties.

Dissolves

The process by which a solid becomes incorporated into a liquid to form a solution.

Fats

Macronutrients composed of fatty acids and glycerol, important for energy storage, insulation, and cell membrane function.