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:

Population Means

The average of a set of values or measurements which belong to the entire population of a dataset.

Analysis of Variance

A collection of statistical models used to analyze the differences among group means and their associated procedures.

Uniformity Test

A statistical test used to determine if all elements of a set or population are consistent or homogeneous.

Laboratory Test

An analysis conducted under controlled conditions in a specialized environment to examine the properties or performance of materials or systems.