An investment project has a positive net present value. The internal rate of return is

Question

Quizplus · Accepted Answer

A positive net present value indicates that the project is expected to generate returns higher than the cost of capital. Therefore, the internal rate of return should also be greater than the cost of capital to generate such returns. A lower internal rate of return would result in a negative net present value, which contradicts the given statement.

An Investment Project Has a Positive Net Present Value