When Using the NPV Method for a Particular Investment Decision

question 11

Multiple Choice

When using the NPV method for a particular investment decision, if the present value of the cash inflows is equal to the present value of the cash outflows, then:

• A) the discount rate used was too high.
• B) the investment should not be made.
• C) the investment has an actual rate of return of zero percent.
• D) the discount rate is equal to the internal rate of return.

---

Definitions:

Connective Tissue Matrix

The extracellular part of connective tissue, consisting of fibers (like collagen and elastin) and ground substance that provides support and binds tissues together.

Ground Substance

The amorphous gel-like substance in the extracellular matrix that provides support and binds cells together.

Leukocytes

White blood cells that are part of the immune system, responsible for defending the body against infectious disease and foreign materials.

Erythrocytes

Red blood cells that transport oxygen from the lungs to tissues throughout the body and return carbon dioxide for exhalation.