If a Project Has an Internal Rate of Return of 12

question 56

Multiple Choice

If a project has an internal rate of return of 12 per cent and a negative net present value,which of the following statements is true regarding the discount rate used for the net present value computation?

• A) The discount rate must have been greater than 12 per cent.
• B) The discount rate must have been less than 12 per cent.
• C) The discount rate must have been equal to 12 per cent.
• D) The discount rate must have been 0 per cent.

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Definitions:

Congruence

The degree to which two or more aspects are in agreement, alignment, or harmony.

Incongruence

The state of being out of harmony or not matching up, often leading to misunderstanding or conflict.

Transmission Channels

The means or pathways through which information, signals, or data are disseminated from one point to another.

Encodes

Refers to the process of converting information into a particular form, especially to hide or secure its content.