If the NPV (Net Present Value)of a Project with Multiple

question 134

Multiple Choice

If the NPV (Net Present Value) of a project with multiple sign reversals is positive,then the project's required rate of return ________ its calculated IRR (Internal Rate of Return) .

• A) must be less than
• B) must be greater than
• C) could be greater or less than
• D) The required rate of return cannot be determined without actual cash flows.

---

Definitions:

Qualitative

Relating to, measuring, or measured by the quality of something rather than its quantity.

Categorical

Pertaining to data that can be divided into specific groups or categories that lack a natural ordering.

Nominal Variable

A type of variable that represents categories with no intrinsic ordering or ranking among them, used for classification or grouping.

Variable

An element, feature, or factor that is liable to vary or change.