A Firm Is Evaluating a Project That Has a Net

question 59

Multiple Choice

A firm is evaluating a project that has a net present value of $0 when a discount rate of 8 percent is used. A discount rate of 6 percent will result in a

• A)negative net present value.
• B)positive net present value.
• C)net present value of $0.
• D)the question cannot be answered based upon the information provided.

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Definitions:

Supernatural

Pertaining to phenomena, forces, or entities beyond the natural world's laws and explanations.

Sacred

Considered worthy of spiritual respect or devotion; something that is holy or has a divine quality.

Profane

Anything that is not sacred or biblical; secular; not related to religion or religious practices.

Sociologists

Social scientists who study the social lives, behaviors, interactions, processes, and organization of people within societies.