The Net Present Value (NPV) of a Project Is Negative

question 60

Multiple Choice

The net present value (NPV) of a project is negative when the discount rate used is:

• A)equal to the project's internal rate of return (IRR).
• B)equal to the yield to maturity of the bonds issued to finance the project.
• C)greater than the project's internal rate of return (IRR).
• D)lower than the return demanded by the firm's stockholders.
• E)less than the project's internal rate of return.

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