Question
3. The relationship between NPV and IRR is such that: A. Both approaches always provide the same ranking of alternative investment projects B. The IRR
3. The relationship between NPV and IRR is such that:
A. Both approaches always provide the same ranking of alternative investment projects
B. The IRR on an investment is the required rate of return that results in a zero NPV when it s used as the discount rate.
C. If the NPV of a project is negative, the IRR must be greater than the cost of capital.
D. None of the above
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Public Finance
Authors: Harvey S Rosen
7th Edition
0072876484, 978-0072876482
