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

question 25

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:

Adjustment

The process of adapting or becoming more suited to a new environment or condition, often involving changes in behavior or thinking.

Transcendence

The act of rising above something to a superior state, often in a spiritual or psychological context.

Psychoanalysis

A therapeutic approach that explores unconscious thoughts and feelings to understand and treat mental and emotional disorders.

Psychoanalytic Perspective

A theory of psychology that emphasizes unconscious processes and childhood experiences in shaping behavior and personality.