If the NPV is positive when using a specific interest rate, the IRR will be greater than that interest rate used.

Question

Quizplus · Accepted Answer

The Internal Rate of Return (IRR) is the interest rate at which the net present value (NPV) of all the cash flows (both positive and negative) from a project or investment equals zero. If the NPV is positive at a specific interest rate, it means that the IRR must be higher than that rate to bring the NPV down to zero.

If the NPV Is Positive When Using a Specific Interest