If the Internal Rate of Return Is Less Than the Discount

question 156

Multiple Choice

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

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

---

Definitions:

Average Daily Receipts

The average amount of cash that a business receives on a daily basis, calculated over a specific period.

Cheques

Written, dated, and signed instruments that direct a bank to pay a specific sum of money to the bearer or a designated party.

Clearing Times

The time period it takes for a financial transaction to be processed and settled.

Lockbox System

A service offered by banks to companies for the collection of payments from customers, where the payments are sent directly to a post office box rather than to the company.