The Internal Rate of Return on a Project

question 3

Multiple Choice

The internal rate of return on a project

• A)is the discount rate that, when applied to a project's cash flows, causes the net present value of the project to be zero.
• B)will always be greater than the opportunity cost of capital.
• C)will always be greater than zero.
• D)All of the above are true statements.

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Definitions:

Interposition

A visual cue in which one object partially covers another, leading to the perception of depth and order in visual space.

Parapsychology

The study of paranormal phenomena, including ESP and psychokinesis.

Psychokinesis

The claimed ability to move or manipulate objects with the mind without physical interaction.

ESP

Extrasensory perception, the ability to gain information about an object, person, location, or physical event through means other than the known human senses.