If a Project Has an Internal Rate of Return of 14

question 61

Multiple Choice

If a project has an internal rate of return of 14 per cent and a positive 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 14 per cent.
• B) The discount rate must have been less than 14 per cent.
• C) The discount rate must have been equal to 14 per cent.
• D) The discount rate must have been 0 per cent.

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Definitions:

Persuadability

The quality or characteristic of being easily influenced or convinced by arguments, appeals, or suggestions.

Education And Intelligence

The process of acquiring knowledge, skills, values, and attitudes through study and experiences, and the ability to apply these cognitive skills towards effective problem-solving and adaptation to the environment.

Self-Esteem

An individual's subjective evaluation of their own worth or value.

Need For Cognition

A personality trait that denotes a person's desire or enjoyment of thinking, understanding, and analyzing complex ideas.