If a Project's Internal Rate of Return Is Greater Than

question 94

True/False

If a project's internal rate of return is greater than the project's required return,then the project's profitability index will be greater than one.

---

Definitions:

Capacitance

Refers to the amount of electric charge that a capacitor can hold, measured in Farads, at a given voltage.

Reactive Power

The component of electrical power that does not result in useful work, measured in VARs (volt-amps reactive), and is generated by reactive components like capacitors and inductors.

Inductive Reactance

A measure of the opposition that an inductor presents to alternating current, due to the magnetic field created by the current.

Capacitive Reactance

The resistance that a capacitor offers to alternating current, depending on the frequency of the current and the capacitor value, measured in ohms.