Question

Project A has cash flows of ₹-10 lakh (initial), ₹3L, ₹4L, ₹5L over 3 years. Project B has the same initial investment but generates ₹6L, ₹4L, ₹2L. At 10% discount rate, which project has higher NPV, and which has higher IRR?

A A has higher NPV, B has higher IRR
B A has both higher NPV and IRR
C B has higher NPV, A has higher IRR
D Both projects have equal IRR
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