Question

A project IRR is 12%. If required rate of return is 10%, NPV sign is:

A Positive Correct Answer Incorrect Answer
B Negative Correct Answer Incorrect Answer
C Zero Correct Answer Incorrect Answer
D Indeterminate Correct Answer Incorrect Answer

Solution

If the Internal Rate of Return (IRR = 12%) is greater than the required rate of return (10%), the Net Present Value (NPV) of the project is positive.

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