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:

Fine Imposed

A monetary penalty levied by an authority on individuals or entities as punishment for violations of legal rules or regulations.

Interest Rate

The cost of borrowing money or the compensation for the service and risk of lending money, usually expressed as a percentage.

Plaster

A mixture of water, lime, or cement, and sand, used to coat walls and ceilings for a smooth or decorative finish.

Labor

Human effort used in the production of goods and services in the economy.