If a project's _____ exceeds the firm's cost of capital, its NPV will be positive.
A) marginal cost of capital
B) cash flow
C) rate of return expected by investors
D) internal rate of return (IRR)
E) discount rate

Question

Quizplus · Accepted Answer

If a project's IRR exceeds the firm's cost of capital, it indicates that the project is expected to generate returns greater than the cost of financing it, resulting in a positive NPV.

If a Project's _____ Exceeds the Firm's Cost of Capital