Question
ABCD Corp. has a project where the Internal Rate of Return (IRR) is 10.05%. Which of the following is true? Assume that the project consists
ABCD Corp. has a project where the Internal Rate of Return (IRR) is 10.05%. Which of the following is true? Assume that the project consists of an initial cash outlay (i.e. investments) that is followed by subsequent inflows. Group of answer choices
A. The project will have a negative NPV if the interest/discount rate is 9.05%.
B. The project will have a negative NPV if the interest/discount rate is 11.92%.
C. The project will "break even" or have a zero NPV when the discount rate is 9.63%.
D. We need more information than just Internal Rate of Return (IRR) to observe whether the project will be profitable at a given interest/discount rate.
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