Which of the Following Statements Regarding NPV Analysis Is True

question 47

Multiple Choice

Which of the following statements regarding NPV analysis is true?

• A) Uncertainties increase as the dollar value of an investment increases
• B) The discount rate can be calculated with certainty if it is based on the weighted average cost of capital
• C) Managers should generally accept projects with an NPV greater than zero
• D) The timing of incremental revenues and costs is irrelevant in NPV analysis

Calculate joint probabilities.

Understand the relationship between different sets of data.

Analyze real-life scenarios using probability concepts.

Understand the concept of random sampling.

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Definitions:

Fixed-Interval

A schedule of reinforcement where a response is rewarded after a set amount of time has passed, used in behavioral studies.

Variable-Interval

A schedule of reinforcement where a response is rewarded after an unpredictable amount of time has passed, in experimental and learning contexts.

Variable-Ratio

A schedule of reinforcement where a response is rewarded after an unpredictable number of responses, commonly used in behavior modification and training.

Fixed-Ratio

A schedule of reinforcement where a response is reinforced only after a specified number of responses.