You Are Considering a Project Which Has an Internal Rate

Multiple Choice

You are considering a project which has an internal rate of return that is equal to the required return.This means that:

A) the net present value is negative in an amount equal to the initial investment
B) the project is returning the minimal amount that is acceptable to you
C) the profitability index is greater than one
D) the average accounting return exceeds the project's required return
E) the project will lower the value of the firm