Which one of the following statements is correct? a. If NPV is positive, IRR will be less than required rate of return b. If NPV = 0, IRR is equal to the required rate of return c. If NPV is positive, IRR is equal to the required rate of return d. If NPV is negative, IRR will be greater than the required rate of return e. None of the above
Which one of the following statements is correct? a. If NPV is positive, IRR will be less than required rate of return b. If NPV = 0, IRR is equal to the required rate of return c. If NPV is positive, IRR is equal to the required rate of return d. If NPV is negative, IRR will be greater than the required rate of return e. None of the above
Chapter10: Capital Budgeting: Decision Criteria And Real Option
Section: Chapter Questions
Problem 3QTD
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Question
Which one of the following statements is correct?
a. If NPV is positive, IRR will be less than required
b. If NPV = 0, IRR is equal to the required rate of return
c. If NPV is positive, IRR is equal to the required rate of return
d. If NPV is negative, IRR will be greater than the required rate of return
e. None of the above
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