-Refer to Scenario 10.1.Jennifer should invest in college when the net present value of that investment is ______ and the internal rate of return is ______ the current interest rate.
A) Positive, greater than
B) Negative, greater than
C) Positive, less than
D) Negative, less than

Question

-Refer to Scenario 10.1.Jennifer should invest in college when the net present value of that investment is ______ and the internal rate of return is ______ the current interest rate.
A) Positive, greater than 
B) Negative, greater than 
C) Positive, less than 
D) Negative, less than

Quizplus · Accepted Answer

Jennifer should invest in college when the net present value (NPV) of that investment is positive, indicating that the present value of future cash flows from the investment exceeds the cost of the investment. Additionally, the internal rate of return (IRR) should be greater than the current interest rate, suggesting that the investment's return exceeds the return she would receive from investing at the current interest rate.