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:

Exercise

Exercise is physical activity that is planned, structured, and repetitive for the purpose of conditioning the body, improving health, and maintaining fitness.

Arthritis

A group of painful and degenerative conditions marked by inflammation in the joints that causes stiffness and pain.

Injuries

Physical harm or damage to the body resulting from accidents, falls, hits, weapons, and other causes.

Soreness

A condition of discomfort or pain in the muscles that occurs after exercise or physical activity, often due to muscle strain or micro-tears.