When the Net Present Value Is Negative, the Internal Rate

question 92

Multiple Choice

When the net present value is negative, the internal rate of return is___________the cost of capital.

• A) less than
• B) equal to
• C) greater than or equal to
• D) greater than

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Definitions:

Project's Scope

Project's scope refers to the specific goals, deliverables, tasks, costs, and deadlines involved in a project, defining its boundaries and what is or is not included in the work to be done.

Cash Flows

The sum total of financial transactions directed into and out of a corporation, markedly influencing its cash flow.

Depreciable Asset

An asset that loses value over time and for which depreciation can be applied for tax and accounting purposes.

Capital Gain

The profit earned from the sale of an asset that has increased in value over its purchase price.