A Firm Is Evaluating a Project That Has a Net

question 115

Multiple Choice

A firm is evaluating a project that has a net present value of $0 when a discount rate of 9 percent is used. A discount rate of 7 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.

---

Definitions:

Third Party Logistics

Refers to companies that provide outsourced logistics services to businesses, handling aspects like transportation, warehousing, and distribution.

Full Truckload Shipment

A shipping mode where a truck carries cargo sufficient to fill an entire trailer, maximizing capacity utilization.

High-low Pricing

A retail strategy where items are initially offered at high prices but later discounted to stimulate sales.

Demand

The quantity of a product or service that consumers are willing and able to purchase at various prices during a specified period of time.