If the Net Present Value of a Project Is Zero

question 61

Multiple Choice

If the net present value of a project is zero based on a discount rate of 16%, then the internal rate of return is:

• A) equal to 16%.
• B) less than 16%.
• C) greater than 16%.
• D) cannot be determined from this data.

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Definitions:

Meter Reader

A person employed by utility companies to read the amount of gas, water, or electricity consumed by households or businesses.

CCF

An abbreviation for 100 cubic feet, commonly used as a measure for billing utility usage like water or natural gas.

Energy-Efficient

Describes products or services that use less energy to perform the same task or work as conventional products, reducing energy waste.

Gas Furnace

A heating system that uses natural gas as fuel to produce heat for residential or commercial spaces.