A Negative Net Present Value Means That The

question 44

Multiple Choice

A negative net present value means that the:

• A) Internal rate of return is less than the required rate of return
• B) Project is acceptable
• C) Present value of the inflows exceeds the present value of the outflows
• D) Company chose the wrong discount rate

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Definitions:

Budget Deficits

occur when a government's expenditures exceed its revenues within a specific fiscal period, creating a shortfall that requires borrowing to finance.

Interest Rates

The expense associated with taking out a loan or the benefit received from depositing funds, typically described as a yearly percentage of the total sum.

GDP

Gross Domestic Product (GDP) signifies a country's economic output, quantifying the sum value of all produced goods and services within a designated timeframe.

Federal Budget Deficit

The financial shortfall when a government's expenditures exceed its revenues within a fiscal year.