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    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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