The ___________ the Discount Rate Used in a Net Present

question 1

Multiple Choice

The ___________ the discount rate used in a net present value analysis, the ___________ the present value of all future cash flows.

• A) lower, higher
• B) lower, lower
• C) higher, lower
• D) EITHER lower, higher OR higher, lower

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Definitions:

Economic Recovery Tax Act

A law enacted in the United States in 1981, aimed at lowering income taxes to spur economic growth.

Clothes-Changing Time

The duration employees spend changing into work-specific clothes or uniforms, often discussed in context of compensation.

On-Site Physical Facilities

Physical resources and infrastructure located at the business premises, such as buildings and equipment.

Wash-Up Time

The time allowed during a work period for employees to clean themselves and their equipment after performing dirty work.