If the Net Present Value of a Project Is $1,000

question 67

Multiple Choice

If the Net Present Value of a project is $1,000 after using a discount rate of 8%, then one can conclude that the Internal Rate of Return is:

• A)greater than 8%.
• B)8%.
• C)between 8% and 10%.
• D)less than 8%.

---

Definitions:

Test Statistic

A numerical value calculated from a sample and used in hypothesis testing to evaluate the plausibility of the null hypothesis.

Critical Region

The set of values for which the null hypothesis is rejected in a statistical test.

Null Hypothesis

A default assumption in statistical hypothesis testing that there is no effect or no difference, used as a basis for testing statistical significance.

Test Statistic

A statistic calculated from sample data, used to determine the p-value in hypothesis testing.