If an investment project (normal project)has an IRR equal to the cost of capital,the NPV for that project is:
A)positive.
B)negative.
C)zero.
D)unable to determine.

Question

Quizplus · Accepted Answer

If the IRR is equal to the cost of capital, then the NPV will be zero. This means that the project's cash inflows and outflows are exactly equal to the required rate of return, resulting in no net gain or loss.

If an Investment Project (Normal Project)has an IRR Equal to the Cost