The net present value (NPV) of a project is negative when the discount rate used is:
A. equal to the project's internal rate of return (IRR).
B. equal to the yield to maturity of the bonds issued to finance the project.
C. greater than the project's internal rate of return (IRR).
D. lower than the return demanded by the firm's stockholders.
E. less than the project's internal rate of return.
Answer: C
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