Which of the Following Statements Is FALSE

question 39

Multiple Choice

Which of the following statements is FALSE?

• A) The higher the minimum desired rate of return, the lower the present value of each future cash flow.
• B) Higher required rates of return lead to lower net present values for capital investments.
• C) Higher required rates of return lead to higher net present values for capital investments.
• D) The net present value for a project can be negative or positive depending on the minimum desired rate of return used.

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Definitions:

Decades

Periods of ten years.

Natural Disturbance

Events occurring in nature, such as forest fires, floods, and hurricanes, that disrupt ecosystem structures and functions but can also lead to biodiversity and regeneration.

Status Quo

A term denoting the existing state or condition of affairs.

Nutrients

Essential chemicals needed by organisms to grow and function properly, often required in small amounts and obtained from the environment or diet.