📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!


    Question

    A project has IRR of 14% and NPV of ₹5 lakhs at 10%

    cost of capital. If cost of capital rises to 16%, what will happen to NPV?
    A Increase Correct Answer Incorrect Answer
    B Decrease Correct Answer Incorrect Answer
    C Remain same Correct Answer Incorrect Answer
    D Zero Correct Answer Incorrect Answer

    Solution

    As discount rate increases, NPV decreases (inverse relationship).

    Practice Next
    ask-question

    Not sure which exam is best for you Talk to our expert

    Get My Free Call