An Investment Project Has a Positive Net Present Value

question 46

Multiple Choice

An investment project has a positive net present value.The internal rate of return is:

• A) less than the cost of capital.
• B) greater than the cost of capital.
• C) equal to the cost of capital.
• D) indeterminate; it depends on the length of the project.

---

Definitions:

Rear Wheel Lock-up

A condition in braking where the rear wheels of a vehicle stop rotating and skid, often due to excessive brake force or poor road conditions.

Master Cylinder Bore

The internal diameter of the master cylinder in a vehicle's brake system, which affects the hydraulic pressure and, ultimately, the braking force.

Crocus Cloth

A very fine, abrasive cloth used for polishing metal surfaces, often utilized in metalworking and finishing applications.

Emery Paper

A type of abrasive paper used for smoothing or polishing metal surfaces.