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:

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