If the Internal Rate of Return Exceeds the Discount Rate

question 95

Multiple Choice

If the internal rate of return exceeds the discount rate, the net present value is:

• A) Zero
• B) Less than one
• C) Positive
• D) Negative

---

Definitions:

Chapter 7

A provision of U.S. bankruptcy law under which an individual or business liquidates assets to pay off debts under the guidance of a court-appointed trustee.

Trustee

Someone legally appointed to manage and administer property or assets for the benefit of another, often used in contexts like bankruptcy, trust funds, and estates.

IRA

An Individual Retirement Account, a financial tool designed to help individuals save for retirement with tax advantages.

Voluntary

An action undertaken by one's own free will without external coercion or undue influence.