contestada

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

Respuesta :

Answer:

A. less than

Explanation:

Net Present Value remains negative when the inflow is less and outflow is more and Net Present Value is also known as NPV, internal rate of return can be calculated from rate which that has been invested and the cost of capital is the fund and the amount of an organisation and a company.

This is the why internal rate of return is less as capital cost is the capital fund of the company which is always more than it.

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