When a Project's Internal Rate of Return Equals Its Opportunity

question 68

Multiple Choice

When a Project's internal rate of return equals its opportunity cost of capital, then:

• A)the project should be rejected.
• B)the project has no cash inflows.
• C)the net present value will be positive.
• D)the net present value will be zero.

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Definitions:

Qualified Education Loan

A loan taken out solely to pay qualified higher education expenses for the borrower, the borrower's spouse, or the borrower's dependent.

Qualified Education Expenses

Expenses required for enrollment or attendance at an educational institution, including tuition, fees, and course-related costs.

Taxpayer's Spouse

The legally married partner of a taxpayer, who may be considered for joint tax filing status and benefits.

Alimony Recapture Rules

Tax regulations designed to prevent excessive deductions for alimony payments, potentially requiring a payer to include in income previously deducted payments under certain conditions.