If the hurdle rate is greater than the internal rate of return,the net present value will be:

Question

Quizplus · Accepted Answer

The hurdle rate represents the minimum rate of return that an investment must meet in order to be accepted. If the hurdle rate is greater than the internal rate of return (IRR), it means that the project is not generating returns higher than the minimum required, resulting in a negative net present value (NPV). Therefore, the best choice is B, negative.

If the Hurdle Rate Is Greater Than the Internal Rate