4. If an investment project has an IRR equal to the interest rate, the NPV for...
4. If an investment project has an IRR equal to the interest rate, the NPV for that project a. is positive b. is negative c. is zero. The NPV vs. r graph shows this best. d. may be negative or positive
Homework Answers
If an investment project has an IRR equal to the interest rate, the NPV for that project:-
c. is zero.
When the investment yield the same rate as the return we require then the present value of cash inflows and cash outflow are also the same which yields a NPV of zero.
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