If the IRR of a Project Is Equal to the Discount

question 118

Multiple Choice

If the IRR of a project is equal to the discount rate of the project then ____.

• A)the PI is zero
• B)the payback period is zero
• C)the NPV is zero
• D)the present value payback period is zero

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Definitions:

Black Box

A system or device whose internal workings are not revealed or are unknown but can be understood based on its input and output behavior.

Consumer Behavior

The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and desires.

Market Segmentation

The process of dividing a broad consumer or business market, normally consisting of existing and potential customers, into sub-groups of consumers based on some type of shared characteristic.

Total Market

The entire pool of potential customers for a product or service, encompassing all segments and demographics.