Tangarine Company is considering a project with an internal rate of return of 12%. Tangarine requires...
Tangarine Company is considering a project with an internal rate of return of 12%. Tangarine requires a minimum rate of return of 10%. The net present value of the project is:
a.negative.
b.equal to zero.
c.infinite.
d.positive.
e.None of these choices are correct.
Homework Answers
Answer:
Option D Is Correct. i.e Positive
Because internal rate of return (12%) is more than minimum rate of return(10%).
At IRR Rate , net present value of the project is equal to zero.
If minimum rate of return is less than IRR the project gets Positive NPV ,
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