If a Project Has a Zero Net Present Value, Then

question 106

Multiple Choice

If a project has a zero net present value, then the internal rate of return will be

• A) less than the discount rate.
• B) greater than the discount rate.
• C) equal to the discount rate.
• D) a negative rate of return.

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Definitions:

Guaranty

A legal commitment to be responsible for another's debt or contractual performance if that person fails to meet their obligations.

Primarily Liable

Liable for paying the amount designated on an instrument when it is presented for payment.

Common Law Lien

A right to keep possession of property belonging to another person until a debt owed by that person is paid in full.

Statute

A written law passed by a legislative body at the federal, state, or local level.