Which of the Following Statements Is Necessarily True If the NPV

question 32

Multiple Choice

Which of the following statements is necessarily true if the NPV of a project is determined to be negative?

• A)The discount rate used to calculate the NPV was too high.
• B)The cost of capital used to calculate the NPV is equal to the project's internal rate of return.
• C)The cost of capital used to calculate the NPV is greater than the project's internal rate of return.
• D)The cost of capital used to calculate the NPV is less than the project's internal rate of return.

---

Definitions:

Ratios

A mathematical relation between two numbers showing how many times the first number contains the second.

Visual Distortion

Visual distortion involves the alteration of visual perception, where what is seen does not correspond to the physical reality, often due to specific conditions or effects in photography, art, and displays.

Bar Chart

A graphical representation of data using bars of varying heights or lengths to compare different categories of information.

Quantitative Axis

A graphical representation axis that displays numerical information, often used in data analysis and statistics.