If a Project Has a Net Present Value of £0

question 20

Multiple Choice

If a project has a net present value of £0 when a discount rate of 10 per cent is used, what can be concluded about the rate of return of the project?

• A)The rate of return is greater than 10 per cent.
• B)The rate of return is less than 10 per cent.
• C)The rate of return equals 10 per cent.
• D)The rate of return is 0.

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Definitions:

Developing Country

A nation with a lower level of industrialization, lower living standards, and lower Human Development Index (HDI) compared to developed countries.

Less Educated

Individuals who have received minimal formal education or training, often resulting in lower skill levels and employment opportunities.

Employment Opportunities

Available positions or jobs within the economy that employ individuals to work.

Poorest Countries

Nations with the lowest indicators of socioeconomic development, often characterized by low GDP per capita, poor infrastructure, and high levels of poverty.