A Project Will Have Only One Internal Rate of Return

question 4

Multiple Choice

A project will have only one internal rate of return if

• A)the net present value is positive.
• B)the net present value is negative.
• C)the cash flows decline over the life of the project.
• D)there is a one-sign change in the cash flows.

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Definitions:

Dermis

The thick layer of living tissue below the epidermis that forms the true skin, containing sweat glands, hair follicles, and blood vessels.

Glossopharyngeal

The ninth cranial nerve, which is involved in tasting, swallowing, and the gag reflex, as well as controlling some muscles and salivary glands.

Trigeminal

Pertaining to the trigeminal nerve, which is the fifth cranial nerve responsible for sensation in the face and motor functions such as biting and chewing.

Cranial Nerve

One of twelve pairs of nerves that originate in the brain and primarily serve the head and neck (except the vagus nerve which extends to the abdomen).