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:

Secondary

Pertaining to the next level of importance or development, often used in education to describe high schools.

Mistreated Children

Children who have experienced physical, emotional, or sexual abuse, or neglect by caregivers.

Unemployed

The status of an individual who is capable of working and is seeking work but is unable to find employment.

SES

Abbreviation for Socioeconomic Status, a measure of an individual's or family's economic and social position compared to others, based on income, education, and occupation.