Which of the Following Is Not Likely to Affect the Discount

question 2

Multiple Choice

Which of the following is not likely to affect the discount rate used to determine NPV?

• A)inflation
• B)risk
• C)the opportunity cost of capital
• D)deflation

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Definitions:

Total Revenues

The complete amount of income generated by a business from its sales or services before any expenses are subtracted.

Entrepreneurial Talent

The unique skills, creativity, and innovative capabilities that entrepreneurs bring to create and manage new ventures, driving economic growth.

Explicit Costs

Direct, out-of-pocket payments for resources employed in the production process.

Opportunity Cost

The cost of an alternative that must be forgone to pursue a certain action, representing the benefits you could have received by taking an alternative action.