If the IRR for a Project Is 15 Percent, Then

question 116

Multiple Choice

If the IRR for a project is 15 percent, then the Project's NPV would be:

• A)Negative at a discount rate of 10 percent
• B)Positive at a discount rate of 20 percent
• C)Negative at a discount rate of 20 percent
• D)Positive at a discount rate of 15 percent

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Definitions:

Equilibrium Output

The level of output where the quantity of goods produced equals the quantity of goods consumed, resulting in market equilibrium.

Potential Output

The maximum amount of goods and services an economy can produce when it is most efficiently utilizing all its resources.

Actual Output

The real quantity of goods and services produced by an economy or firm at a given period, regardless of capacity.

Nominal GDP

The overall economic output of a country, consisting of all final goods and services produced in a defined period, assessed at prevailing market prices without correction for inflation.