Shore Builders is considering a project with an internal rate of return of 16.5%.Shore Builders requires a minimum rate of return of 14%.What is the net present value of the project?

Question

Quizplus · Accepted Answer

If the internal rate of return of a project exceeds the required minimum rate of return, the net present value of the project will be positive. Therefore, since the IRR of this project is 16.5% which is greater than the minimum required rate of return of 14%, the net present value of the project will be positive. Thus, the best choice is D.

Shore Builders Is Considering a Project with an Internal Rate