If the NPV (Net Present Value)of a Project with One

question 40

Multiple Choice

If the NPV (Net Present Value) of a project with one sign reversal is positive,then the project's IRR (Internal Rate of Return) ________ the required rate of return.

• A) must be less than
• B) must be greater than
• C) could be greater or less than
• D) Cannot be determined without actual cash flows

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Definitions:

Naturalistic Observation

The practice of observing subjects in their natural environments without any manipulation by the observer.

Correlational Studies

Research methods that explore the relationship between two or more variables to determine if a statistically significant association exists, without assuming causality.

Experiment

A scientific procedure undertaken to make a discovery, test a hypothesis, or demonstrate a known fact, typically involving the manipulation of variables under controlled conditions.

Random Sample

A selection method where every member of a population has an equal chance of being included in the sample, decreasing bias in data collection.