If an Investment Project Has a Positive Net Present Value

question 108

Multiple Choice

If an investment project has a positive net present value, then the internal rate of return is

• A) less than the cost of capital.
• B) greater than the cost of capital.
• C) equal to the cost of capital.
• D) indeterminate, because it depends on the length of the project.

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Definitions:

Psychopathology

A sickness or disorder of the mind.

Daily Functioning

The ability of an individual to perform normal daily activities, such as eating, bathing, dressing, paying bills, and socializing.

Social Practice

A pattern of behavior that is regularly and repeatedly performed in a society, and thus, becomes a societal norm.

Diathesis-stress Model

The Diathesis-stress Model is a psychological theory that explains behavior as a predispositional vulnerability together with stress from life experiences.