Question

    A project reports an Internal Rate of Return (IRR) of

    14%, and the cost of capital is 10%. However, the Net Present Value (NPV) at 10% is shown as ₹0. What does this imply?
    A The IRR has been overstated and should be revised. Correct Answer Incorrect Answer
    B Both the IRR and NPV calculations are incorrect. Correct Answer Incorrect Answer
    C This scenario is not possible under accurate computations. Correct Answer Incorrect Answer
    D The IRR is accurate, the NPV has likely been miscalculated. Correct Answer Incorrect Answer

    Solution

    The correct answer is A

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