If the Internal Rate of Return Exceeds the Discount Rate

question 95

Multiple Choice

If the internal rate of return exceeds the discount rate, then the net present value of a project is

• A)positive.
• B)negative.
• C)zero.
• D)one.

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Definitions:

Accounting Period

The span of time at the end of which the financial position of a business is calculated and reported, typically a month, quarter, or year.

Unexpired Insurance

The portion of an insurance premium that has not yet expired during the policy period.

Fiscal Period

A specific time period for which an organization prepares financial statements, typically a year, but can also be a quarter or month.

Deferred Expense

A deferred expense is an expenditure that is made in advance and recorded as an asset until it is consumed or its value expires, at which point it is charged to expense.