When the Net Present Value for a Project Is Negative

question 131

Multiple Choice

When the net present value for a project is negative, the internal rater of return is _________ the cost of capital.

• A)greater than
• B)greater than or equal to
• C)less than
• D)equal to

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Definitions:

Sectoral Shifts

Changes in the economic landscape that cause resources (like labor) to move from one industry or sector to another, often due to technological changes or globalization.

Frictional Unemployment

Short-term unemployment that occurs when transitioning between jobs or entering the workforce.

Unemployment Insurance

Unemployment insurance is a government program that provides temporary financial assistance to workers who have lost their jobs through no fault of their own.

Structural Unemployment

Joblessness arising from the restructuring of industries, usually caused by advancements in technology, instead of variations in market supply or demand.