If the Internal Rate of Return Is Less Than the Required

question 194

True/False

If the internal rate of return is less than the required rate of return for a project, then the net present value of that project is positive.

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Definitions:

Credits

In accounting, credits refer to an entry on the right-hand side of an account ledger, representing an increase in liability, equity accounts, or revenue, or a decrease in an asset or expense account.

Conversion

The act of changing one form of securities into another, such as converting bonds into shares of stock, or the process of changing one currency into another.

Trading Securities

Financial securities that are purchased and held primarily for sale in the near term to generate income on short-term price differences.

Unrealized Holding

A profit or loss that arises from the change in value of an investment that has not yet been sold or realized.