If a Company's Required Rate of Return Is 10% And

question 33

Multiple Choice

If a company's required rate of return is 10% and, in using the net present value method, a project's net present value is zero, this indicates that the

• A) project's rate of return exceeds 10%.
• B) project's rate of return is less than the minimum rate required.
• C) project earns a rate of return of 10%.
• D) project earns a rate of return of 0%.

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Definitions:

New Venture

A recently started business or project that typically involves some element of risk or innovation.

Confidential

Information or material meant to be kept secret or private between included parties.

Financial Status

The condition of one's financial health, often evaluated by income, expenses, debt, and assets.

Pitch

The act of clearly presenting and describing a product or service to others.