When the net present value for a project is negative, the internal rater of return is _________ the cost of capital.

Name: When the net present value for a project is negative, the internal rater of return is _________ the cost of capital.
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Question

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When the net present value (NPV) is negative, it indicates that the project's internal rate of return (IRR) is less than the cost of capital, as the project is not expected to generate enough returns to cover the cost of the investment.

When the Net Present Value for a Project Is Negative