The Selection of an Appropriate Discount Rate for Determining Net

question 69

Multiple Choice

The selection of an appropriate discount rate for determining net present value of a particular investment proposal does not depend upon:

• A)The present value of the proposal's future cash flows.
• B)Alternative investment opportunities available.
• C)The nature of the investment proposal.
• D)The investor's cost of capital.

---

Definitions:

Solution Infeasible

A situation in optimization where no solution meets the constraints imposed on the problem.

Linear Programming

A mathematical method used to achieve the best outcome in a mathematical model whose requirements are represented by linear relationships.

Operations Managers

Individuals responsible for overseeing, designing, and controlling the process of production and redesigning business operations in the production of goods and/or services.

Linear Programming

A mathematical method for determining a way to achieve the best outcome in a given mathematical model with linear relationships.