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You are evaluating a project and plotted the NPV against potential discount rate as in the graph below. You identified the IRRs of this project.
You are evaluating a project and plotted the NPV against potential discount rate as in the graph below. You identified the IRRs of this project. Then you found out that your cost of capital is 10%. Should you invest in the project or not $120,000 $100,000 $80,000 $60,000 NPV $40,000 $20,000 IRR = 5.79% $0 5% 10% 15% 20% 25% 30% -$20,000 Cost of IRR = 13.80% Capital Discount Rate OA. It depends on the assumptions used in the IRR calculation OB. It depends on which IRR is the correct IRR C. Yes D. No
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