If the Net Present Value of an Investment Is Negative

question 62

Multiple Choice

If the net present value of an investment is negative, then:

• A) the actual rate of return is less than the discount rate.
• B) the actual rate of return is more than the discount rate.
• C) the actual rate of return is negative.
• D) the discount rate is negative.

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Definitions:

Poor Bone Density

A condition characterized by lower than normal levels of mineral content and density in bones, increasing the risk of fractures.

Menopause

The natural decline in reproductive hormones when a woman reaches her 40s or 50s, marking the end of the menstrual cycle.

Marginal Tax Rates

The rate at which the last dollar of a taxpayer's income is taxed, indicating the rate applied to each additional dollar of income.

Capital Gains

The profit realized from the sale of assets, such as stocks or real estate, that have increased in value over their purchase price.