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.

---

Definitions:

Stockholders

Individuals or entities that own shares in a corporation, providing them ownership interest.

Prior Period Adjustments

Adjustments made to the financial statements to correct errors or omissions in the financials of previous reporting periods.

Unacceptable Accounting Practices

Methods or practices that are not in accordance with generally accepted accounting principles (GAAP) or ethical standards.

Salvage Value

The estimated resale value of an asset at the end of its useful life.