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:

Master Control

A centralized control mechanism or system that regulates or guides the operations of various components within a larger system or machine.

Normally Closed

A term describing a contact or circuit condition that is closed (allowing current flow) when in its default, unactuated state.

Exhibit

To display or demonstrate a particular feature, behavior, or characteristic in a clear or noticeable manner.

Normally Closed

Refers to a switch or relay that is in a closed (conducting) state when not energized.