When the Net Present Value for a Project Is Negative

question 131

Multiple Choice

When the net present value for a project is negative, the internal rater of return is _________ the cost of capital.

• A)greater than
• B)greater than or equal to
• C)less than
• D)equal to

---

Definitions:

Stochastic Model

A model that incorporates randomness and unpredictability, often used in various fields to simulate the behavior of complex systems under uncertainty.

Hiring Additional Employees

The process of recruiting and adding new staff to an organization's workforce to accommodate growth, fill vacancies, or enhance capabilities.

Growth Percentage

A measure of financial or business expansion, calculated by comparing an increase in size or value over a particular period.

Upward Mobility Rate

The frequency or likelihood with which individuals in an organization or society can ascend to higher social or economic positions.