You are the CEO of a small company and have just received a report with a NPV analysis for a project under consideration. The faxed machine was low in ink and certain information did not show. This what shows:

Initial Outlay: $6,000

Operating Cash Flows: $4,000

Profitability Index: 1.13

No info on discounting rate, length of the project, or termination value was printed legibly. Your assistant has offered the following statement upon your query,"The IRR of this project is certainly less than the discounting rate." Is this statement True or False?