When the Net Present Value Is Negative, the Internal Rate

question 59

Multiple Choice

When the net present value is negative, the internal rate of return is __________ the cost of capital.

• A)greater than
• B)greater than or equal to
• C)less than
• D)equal to
• E)none of the above

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Definitions:

Skinnerian Conditioning

A form of learning in which behavior is modified by its consequences; reinforcement or punishment modifies the likelihood of a behavior's recurring.

Classical Conditioning

A training process where a response initially caused by a second stimulus is eventually provoked by the first stimulus, due to the continuous pairing of the two stimuli.

Neutral Stimulus

A stimulus that initially produces no specific response other than focusing attention, until it is associated with an unconditioned stimulus.

Organism's Responding

The manner in which an organism reacts to stimuli or changes in its environment.