For conventional cash-flow patterns, an IRR greater than the required rate of return or discount rate used to value the project's cash flows implies a [blank] NPV project.
A)positive
B)negative
C)neutral
D)None of the above; this is not a situation that is consistently one way or another

Question

Quizplus · Accepted Answer

An IRR greater than the required rate of return indicates that the project's cash flows have a higher rate of return than what the investor is expecting or requiring. This implies that the project is generating more cash flows than the initial investment and is considered a positive NPV project.

For Conventional Cash-Flow Patterns, an IRR Greater Than the Required