If a Project Has an Internal Rate of Return of 14

question 17

Multiple Choice

If a project has an internal rate of return of 14% and a positive net present value, which of the following statements istrue regarding the discount rate used for the net present value computation?

• A) The discount rate must have been greater than 14%.
• B) The discount rate must have been less than 14%.
• C) The discount rate must have been equal to 14%.
• D) The discount rate must have been 0%.

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Definitions:

Sociometry

A quantitative method for measuring social relationships, often used to identify social networks and patterns within groups.

Group Structure

The arrangement or organization of relations between members within a group.

Group Behavior

The actions, norms, and psychological processes that occur within a social group or between social groups.

Experimental Study

A research method involving the manipulation of variables to test hypotheses and observe the effects on an outcome.