If the Calculated NPV Is Negative,then Which of the Following

question 181

Multiple Choice

If the calculated NPV is negative,then which of the following must be true? The discount rate used is

• A) Equal to the internal rate of return.
• B) Too high.
• C) Greater than the internal rate of return.
• D) Too low.
• E) Less than the internal rate of return.

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Definitions:

Vision

A company's long-term aspirations, detailing what it hopes to achieve or accomplish in the future.

Idea

A thought or suggestion as to a possible course of action, concept, or mental impression.

Objective

A specific result that a person or system aims to achieve within a time frame and with available resources.

Goal

A desired result or achievement toward which effort is directed; an aim or end.