If a project's IRR is equal to its required return,then the project's NPV is equal to zero and its PI is equal to one.

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This statement is correct according to the following relationships among IRR, NPV and required return: - If IRR = required return, then NPV = 0 - If NPV > 0, then IRR > required return - If NPV < 0, then IRR < required return Also, the profitability index (PI) is calculated as the present value of future cash flows divided by the initial investment, so if NPV = 0, then PI = 1.

If a Project's IRR Is Equal to Its Required Return,then