If an Investment Project (Normal Project)has an IRR Equal to the Cost

question 67

Multiple Choice

If an investment project (normal project) has an IRR equal to the cost of capital, the NPV for that project is

• A)positive.
• B)negative.
• C)zero.
• D)unable to be determined.

---

Definitions:

Unfair-Competition Argument

A contention in international trade that certain practices give companies or countries an unjust advantage, such as labor exploitation or environmental bypassing.

Comparative Advantage

An economic theory that describes how countries gain from trade by specializing in goods they can produce more efficiently than others.

American Automobile Industry

A sector of the economy focused on the manufacturing, marketing, and sale of motor vehicles in the United States.

Korean Steel Industry

The sector involving the production and manufacturing of steel within South Korea, known for its significant contribution to the global market.