Which of the Following Statements Is True

question 39

Multiple Choice

Which of the following statements is true?

• A)The internal rate of return is equal to the required rate of return when the net present value is equal to zero.
• B)The internal rate of return is greater than the required rate of return when the net present value is negative.
• C)The internal rate of return is less than the required rate of return when the net present value is positive.
• D)None of the given options is true.

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Definitions:

Utility Function

It represents an individual's preferences over a set of goods and services, specifying the level of satisfaction or utility derived from different combinations of goods and services.

Cocoa

The dried and fully fermented fatty seed of Theobroma cacao, from which cocoa solids and cocoa butter are extracted.

Cheese

A dairy product made from curdled or cultured milk.

Demand

The quantity of a product or service that consumers are willing and able to buy at various prices.