Asked by
Mylynn Collins
on Oct 10, 2024
Verified
If the internal rate of return is less than the required rate of return for a project, then the net present value of that project is positive.
Required Rate
Often referred to as the discount rate or required rate of return, it is the minimum return an investor expects to receive for investing in a project or business.
Net Present Value
A method of evaluating the attractiveness of an investment project, by determining the present value of its expected future cash flows minus the initial investment.
- Identify the presuppositions inherent in the net present value and internal rate of return methodologies.
Verified Answer
JE
Learning Objectives
- Identify the presuppositions inherent in the net present value and internal rate of return methodologies.
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