A 15% Internal Rate of Return (IRR) on a Proposed

question 121

Multiple Choice

A 15% internal rate of return (IRR) on a proposed capital investment indicates all of the following except:

• A) The economic rate of return on the project is expected to be 15%.
• B) Use of a 15% discount rate would result in an estimated project NPV of zero.
• C) An acceptable capital project if the cost of capital is 16 percent or higher.
• D) A positive net present value (NPV) if the cost of capital is less than 15%.
• E) An acceptable project, in a present value sense, if the discount rate is less than 15%.

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Definitions:

Hemopoiesis

The production of all types of blood cells in the bone marrow, including red blood cells, white blood cells, and platelets.

Muscular System

The biological system that comprises of all the muscles in the body and enables movement, both voluntary and involuntary, as well as posture maintenance.

Amputation

The surgical removal of all or part of a limb or extremity such as an arm, leg, foot, hand, toe, or finger.

Excision

The process of cutting out or surgical removal of a piece of tissue, an organ, or a foreign object from the body.