Question
You are running an interpolation to find IRR. You found two interest rates, whereby the lower interest rate has negative PW value, and higher interest
You are running an interpolation to find IRR. You found two interest rates, whereby the lower interest rate has negative PW value, and higher interest rate has positive PW value. Absolute value of the PW for lower interest rate is greater than the absolute value of the PW for the higher interest rate. Which can be concluded?
O IRR is greater than the average of lower and higher interest rates.
O IRR is less than the average of lower and higher interest rates.
O IRR is equal to the average of lower and higher interest rates.
O I cannot conclude any of the above from the provided information
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