When the Net Present Value for a Project Is Negative

question 150

Multiple Choice

When the net present value for a project is negative, the internal rate of return is _________ the cost of capital.

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

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Definitions:

Government Job

Employment within a government agency or department, often associated with stability, benefits, and serving the public interest.

Laws

Established rules of conduct enforced by a controlling authority, governing social, economic, and political relationships.

Additional Children

Refers to the increment in the number of children in a family, impacting financial planning and expenditures.

Conservative View

A perspective in economics or politics that typically advocates for less government intervention, lower taxes, and reduced public spending to encourage private sector growth.