If the hurdle rate is greater than the internal rate of return,the net present value will be negative.The internal rate of return is the rate at which net present value is zero,so if internal rate of return is less than the hurdle rate,net present value will be negative.

Question

Quizplus · Accepted Answer

This statement accurately describes the relationship between the hurdle rate, internal rate of return, and net present value.

If the Hurdle Rate Is Greater Than the Internal Rate