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:

Concrete Operational

A stage in cognitive development, according to Piaget, where children gain the ability to think logically about concrete events.

Preoperational

A stage in Jean Piaget's theory of cognitive development during which children aged approximately 2 to 7 years old develop memory and imagination.

Formal Operational

A stage in Piaget's theory of cognitive development where individuals gain the ability to think abstractly, systematically, and logically.

Object Permanence

The understanding that objects continue to exist even when they cannot be seen, heard, or otherwise sensed, a concept typically developed during infancy.