If the Net Present Value (NPV) of an Investment Is

question 29

Multiple Choice

If the net present value (NPV) of an investment is zero, then the internal rate of return (IRR) is:

• A) less than the discount rate.
• B) more than the discount rate.
• C) equal to the discount rate.
• D) negative.

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Definitions:

Vehicle Sold

Transaction event in which ownership of a vehicle is transferred from the seller to the buyer.

Average Rate

A calculation representing the sum of rates over a set period divided by the number of rates, used to determine a common or typical value.

Graduated Commission

A compensation structure where the commission rate increases as salespersons achieve higher sales targets.

Average Rate

A term used in various contexts to denote the mean value of a set of rates, such as interest rates or exchange rates, calculated over a specified period or set of instances.