When a Project's Internal Rate of Return Equals the Discount

question 107

Multiple Choice

When a project's internal rate of return equals the discount rate,

• A)A manager has probably manipulated the analysis
• B)The net present value is zero
• C)The discount rate is equal to the industry average
• D)None of these ans choices are correct

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Definitions:

Limited Services

Refers to businesses that offer a restricted range of services, often to maintain efficiency and reduce costs.

Extreme-value Retailers

Retail stores that offer a wide variety of merchandise, typically with low prices, targeting consumers looking for extreme deals.

Limited Assortments

Retailing strategy where a store offers a small number of products in order to focus on a specific category and reduce costs.

Excess Inventory

Refers to the surplus of products or materials that a business has on hand, exceeding the demand or need, often leading to storage issues or discounted sales.