With a required rate of return of 17%, the IRR of a standard capital budgeting project is equal to 19%. What does this say about this project’s NPV? Select one: a. The NPV is greater than zero. b. The NPV is equal to zero. c. The NPV is less than zero. d. The NPV is equal to the ratio given by 19% divided by 17%. e. There is not enough information to determine.
With a required rate of return of 17%, the IRR of a standard capital budgeting project is equal to 19%. What does this say about this project’s NPV? Select one: a. The NPV is greater than zero. b. The NPV is equal to zero. c. The NPV is less than zero. d. The NPV is equal to the ratio given by 19% divided by 17%. e. There is not enough information to determine.
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 2P
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With a required rate of return of 17%, the IRR of a standard capital budgeting project is equal to 19%. What does this say about this project’s NPV ?
Select one:
a.
The NPV is greater than zero.
b.
The NPV is equal to zero.
c.
The NPV is less than zero.
d.
The NPV is equal to the ratio given by 19% divided by 17%.
e.
There is not enough information to determine.
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