The Internal Rate of Return on a Project with an Initial

Multiple Choice

The internal rate of return on a project with an initial cost of $500 is 7.5 percent, so at a discount rate of 7.5 percent

A) the profitability index will be equal to one.
B) the net present value of the project will be equal to zero.
C) the present value of future net revenue will be equal to $500.
D) All of the above are correct.