Tangarine Company is considering a project with an internal rate of return of 12%.Tangarine requires a minimum rate of return of 10%.The net present value of the project is:

Question

Quizplus · Accepted Answer

Since the internal rate of return of the project is greater than Tangarine's minimum required rate of return, the project is expected to generate returns that exceed their cost of capital. Therefore, the net present value of the project is likely to be positive, making D the correct answer.

Tangarine Company Is Considering a Project with an Internal Rate