A Project Has a Projected IRR of Negative 100 Percent

question 77

Multiple Choice

A project has a projected IRR of negative 100 percent.Which one of the following statements must also be true concerning this project?

• A)The discounted payback period equals the life of the project.
• B)The operating cash flow is positive and equal to the depreciation.
• C)The net present value of the project is negative and equal to the initial investment.
• D)The payback period is exactly equal to the life of the project.
• E)The net present value of the project is equal to zero.

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Definitions:

Competitive Benchmarking

A process of comparing a company's products, services, or processes against those of its competitors to identify areas for improvement.

Internal Benchmarking

The process of comparing business processes and performance metrics to the best practices from within the same organization.

Process Benchmarking

The process of assessing business methods and performance statistics by benchmarking them against the best practices in the industry or those adopted by other companies.

Industry Benchmarking

The process of comparing a company's performance metrics with those of the leaders in its industry to identify areas for improvement.