The Firm Is Considering a Project Which Has an Initial

Multiple Choice

The firm is considering a project which has an initial cost of $1,000,000 and will have a single return of 1,100,000 in one year. If the risk-adjusted discount rate is 9 percent, should the firm invest to this project?

A) It should not because NPV is negative.
B) It should not because IRR is greater than the discount rate.
C) It should because NPV is positive.
D) It should because IRR is less than the discount rate.