If an Investment Project (Normal Project)has an IRR Equal to the Cost

question 28

Multiple Choice

If an investment project (normal project) has an IRR equal to the cost of capital,the NPV for that project is:

• A)positive.
• B)negative.
• C)zero.
• D)unable to determine.

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Definitions:

Expenses

The outflows or using up of assets as part of operations of a business to generate revenue.

Revenue

The total amount of money generated by the sale of goods or services related to a company's primary operations during a specific period.

Gains Or Losses

The financial results from selling assets or incurring liabilities, measured as the difference between the sale proceeds and the value recorded in accounts.

Property, Plant

Long-term tangible assets, such as land, buildings, and equipment, used in the operation of a business to generate income.