If the IRR for a project is 15 percent, then the Project's NPV would be:
A)negative at a discount rate of 10 percent.
B)positive at a discount rate of 20 percent.
C)negative at a discount rate of 20 percent.
D)positive at a discount rate of 15 percent.

Question

Quizplus · Accepted Answer

The IRR is the discount rate at which the NPV of a project is zero. If the discount rate is higher than the IRR (20% > 15%), the NPV will be negative.

If the IRR for a Project Is 15 Percent, Then