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:

Scaling

The process of adjusting the size, capacity, or scope of an operation or system to meet changing objectives or demands.

Innovation Process

A sequence of activities that begins with idea generation and proceeds to product development, market introduction, and ongoing improvement.

Experimenting

The process of conducting trials or tests to discover, verify, or establish information or principles.

Reverse Innovation

Reverse Innovation is a concept where goods or services developed as inexpensive models to meet the needs in developing countries are then adapted for sale in developed countries.