Net Present Value Will Be Greater

question 41

Multiple Choice

Net present value will be greater:

• A)as a fixed set of cash receipts occurs later rather than earlier.
• B)if the future value of a cash flow is smaller.
• C)for one end-of-year receipt of $1200 than for twelve monthly receipts of $100 each.
• D)for a 4% discount rate than for a 6% discount rate.
• E)All of the above are true.

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Definitions:

Sediment

Particles of organic or inorganic matter that accumulate in a solid layer on the floor of water or on any surface.

Strike-Slip Fault

A type of fault where rock masses slide horizontally past each other.

Underwater Landslide

A movement of rock, earth, or debris down a slope in an underwater environment, often triggered by earthquakes or other disturbances.

Tsunami

Ocean waves of exceptionally long lengths triggered by significant disturbances such as seismic activity, volcanic explosions, or submarine landslides.