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:

Inductive Argument

A type of reasoning that constructs or assesses propositions based on evidence or examples, with conclusions that are probable and supported by the premises rather than definitively proven.

Deductive Argument

A form of reasoning where, if the premises are true, the conclusion necessarily follows.

Implicit Premise

An unstated assumption that supports the logical structure of an argument.

Opponent's Argument

The viewpoint or stance presented by someone opposed to a particular position or argument.