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

question 27

Multiple Choice

If a project's net present value is negative,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.

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Definitions:

Turbidity Current

A current in water or air that moves downward because it is more dense than the adjacent water or air, especially applied to a swift, bottom-flowing current of water and suspended sediment on the seafloor or the bottom of a lake.

Continental Shelf

A gently sloping, relatively shallow area of seafloor that flanks a continent and is underlain by thinned continental crust.

Clastic Rocks

Sedimentary rocks composed of fragments of pre-existing rocks, transported and deposited by water, wind, or ice.

Shale

A fine-grained sedimentary rock formed from clay and mud, often used as a source of oil and natural gas.