A Firm Has Found That the Net Present Value of a Project

Multiple Choice

A firm has found that the net present value of a project is equal to zero. The net present value was calculated using the firm's risk-adjusted discount rate of 15 percent. Based on this information, your conclusion is

A) the internal rate of return on the project is greater than 15 percent.
B) the internal rate of return on the project is equal to 15 percent.
C) the internal rate of return on the project is less than 15 percent.
D) the internal rate of return on the project may be greater than, equal to, or less than 15 percent depending on which method was used to adjust the firm's discount rate for risk.