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:

Money Supply

The complete sum of financial resources present within an economy at a given moment, encompassing cash, coins, and the funds available in checking and savings accounts.

M1

A category of the money supply that includes all physical money like coins and currency, as well as demand deposits, checking accounts, and negotiable order of withdrawal (NOW) accounts.

M2

A measure of the money supply that includes cash, checking deposits, and easily convertible near money.

Monetary Policy

The method used by a country's monetary authority to regulate the amount of money in circulation, typically aiming at a specific inflation or interest rate to promote economic stability and expansion.