When Using the Net Present Value Technique to Evaluate the Quality

question 93

Multiple Choice

When using the net present value technique to evaluate the quality of an investment, if the resulting NPV is positive, the cost of capital will generally be:

• A) less than the internal rate of return.
• B) greater than the internal rate of return.
• C) equal to the internal rate of return.
• D) None of the above

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Definitions:

Defense Mechanism

psychological strategies brought into play by the unconscious mind to manipulate, deny, or distort reality in order to defend against feelings of anxiety and unacceptable impulses.

Repression

A defense mechanism where distressing thoughts and feelings are unconsciously blocked from conscious awareness.

Pervasive

Having the tendency to spread widely throughout an area or group of people.

Latency Period

A phase in psychosexual development, occurring from about age 6 to puberty, characterized by a decrease in sexual interests and activities.