The internal rate of return on an investment (A) is calculated in much the same way as a bond's yield-to-maturity. B is always negative when the NPV of the project is zero or less. is the risk-free rate plus a market premium times the firm's beta. D) is subject to change when the firm's cost of capital changes. D Systematic risk affects all securities to varying degrees and cannot be diversified away. A True B) False Question 17 0.75 Points An investment proposal has an initial cash outlay of $100,000 and a net present value of $50,000. The project's profitability index is A) 2.00 B 1.50 1.00 0.50