Which of the Following Statements Is (Are)true

question 43

Multiple Choice

Which of the following statements is (are) true?
(I) If an investment project has an internal rate of return (IRR) equal to the cost of capital,the net present value (NPV) for that project must be positive.
(II) If the cumulative cash flows,∑ F_t,change signs more than once during the term of an investment,there may be more than one IRR.

• A)Both are true
• B)I only
• C)II only
• D)Neither are true

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Definitions:

Assimilates

The process by which an individual incorporates new information into existing cognitive schemas or frameworks.

Schema

Mental structures or frameworks that organize and interpret information, guiding understanding and actions in the world.

Mediated Learning

A central concept in Vygotsky’s theory. The child’s acquisition of knowledge is “mediated” in the sense that it is highly influenced by the surrounding environment and culture.

Surrounding Culture

The shared values, beliefs, norms, and practices of a group of people that an individual is embedded within and influenced by.