Consider a Project with an Initial Investment and Positive Future

question 88

Multiple Choice

Consider a project with an initial investment and positive future cash flows. As the cost of capital is increased, the:

• A)IRR remains constant while NPV increases.
• B)IRR decreases while NPV remains constant.
• C)IRR remains constant while NPV decreases.
• D)IRR increases while NPV remains constant.
• E)IRR decreases while NPV decreases.

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Definitions:

Prospecting Method

Techniques or strategies used to identify potential customers or clients for a business, aiming to initiate and establish new business opportunities.

E-mail Marketing

A technique of sending commercial messages to a group of people using electronic mail, aimed at promoting products or services.

Potential Contacts

Individuals or entities that could possibly be converted into clients or customers, identified through research or networking as having an interest or need for a product or service.

Leads

Potential customers who have shown interest in a company's product or service and may eventually result in a sale.