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6 When comparing the IRR to your Cost of Capital, what is relationship between the two when NPV is zero ? 7 If the IRR
6 When comparing the IRR to your Cost of Capital, what is relationship between the two when NPV is zero ? 7 If the IRR is 12% and the NPV comes out negative, what can you say about the Cost of capital used to discount the flows. Which statement is False A If the NPV of a project is positive, the IRR exceeds the cost of capital B The bigger the discount rate used on afuture value, the lower the Present value. the higher the IRR the higher the NPV C D None of the above. 8
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