When a Project's Internal Rate of Return Equals Its Opportunity

question 7

Multiple Choice

When a project's internal rate of return equals its opportunity cost of capital,then the:

• A) project should be rejected.
• B) project has no cash inflows.
• C) net present value will be positive.
• D) net present value will be zero.

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Definitions:

Roof

The upper covering of a building, providing protection from weather conditions such as rain or snow.

Vitamins

Organic compounds essential to human health that must be obtained from the diet because they are not synthesized by the body in sufficient amounts.

Regulating Chemicals

Substances used to control or adjust processes in the body or in industrial practices.

Growth

The process of increasing in physical size, complexity, or capability, often through cell multiplication in biological contexts.