If a Project's Net Present Value Is Zero,the Internal Rate

question 53

Multiple Choice

If a project's net present value is zero,the internal rate of return is:

• A)less than the discount rate.
• B)equal to the discount rate.
• C)greater than the discount rate.
• D)cannot be determined without more information.
• E)None of the answer choices is correct.

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Definitions:

Simple Additive Decision Rule

A decision-making process in which options are evaluated by summing up the merits or scores of their attributes, simplifying the choice among multiple alternatives.

Decision Rules

Guidelines or criteria used by consumers or individuals in making choices among various alternatives.

Ethnocentrism

The belief in the superiority of one's own ethnic group or culture, often leading to judgment of other cultures solely by the values and standards of one's own culture.

Simple Additive Rule

A decision-making process where each option is evaluated and scored on several criteria, and the scores are simply added up to make a decision.