When the net present value is negative,the internal rate of return is ________ the cost of capital.
A) greater than
B) greater or equal to
C) less than
D) equal to

Name: When the net present value is negative,the internal rate of return is ________ the cost of capital. A) greater than B) greater or equal to C) less than D) equal to
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Question

Quizplus · Accepted Answer

A negative NPV value means the IRR generates from the project is less than the firm's cost of capital.

When the Net Present Value Is Negative,the Internal Rate of Return