The investment in Project A is $ 1 million, and the investment in Project B is $

Question:

The investment in Project A is $ 1 million, and the investment in Project B is $ 2 million. Both projects have a unique internal rate of return of 20 percent. Is the following statement true or false?

For any discount rate from 0 percent to 20 percent, Project B has an NPV twice as great as that of Project A. Explain your answer.

Internal Rate of Return
Internal Rate of Return of IRR is a capital budgeting tool that is used to assess the viability of an investment opportunity. IRR is the true rate of return that a project is capable of generating. It is a metric that tells you about the investment... Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...