A Firm That Uses a Discount Rate of 10 Percent

Multiple Choice

A firm that uses a discount rate of 10 percent calculated the internal rate of return of a project to be 11% so

A) the net present value of the project is negative.
B) the profitability index is between 0 and 1.
C) the present value of the future net revenue is less than the initial investment.
D) the net present value is positive.