When the net present value is negative, the internal rate of return is the cost of capital.
A) less than
B) equal to
C) greater than or equal to
D) greater than

Question

Quizplus · Accepted Answer

When the net present value (NPV) is negative, it means that the project's returns do not cover its costs, implying that the internal rate of return (IRR) is less than the cost of capital.

When the Net Present Value Is Negative, the Internal Rate