Question

A project reports an Internal Rate of Return (IR

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