If the net present value for a project is negative, that would also indicate that the internal rate of return must be negative.

Question

Quizplus · Accepted Answer

A negative net present value (NPV) indicates that the project's rate of return is less than the discount rate used in the NPV calculation, not necessarily that the internal rate of return (IRR) is negative. The IRR could still be positive but less than the discount rate.

If the Net Present Value for a Project Is Negative