In general, NPV is Multiple choice question. equal to zero whether the discount rates are above or below the IRR. equal to one when the discount rate equals the IRR. positive for discount rates above the IRR. positive for discount rates below the IRR.
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Which of the following net present value (NPV) and internal rate of return (IRR) statements is correct? a. If a project's IRR is equal to the discount rate, the project's NPV must be greater than zero b. A project's NPV will always be greater than zero if the project's IRR is greater than zero c. An investment should be accepted if the NPV is positive d. An investment with greater cash inflows than cash outflows, regardless of when the cash flows occur, will always have a positive NPV
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When a project's internal rate of return equals its opportunity cost of capital, then: The net present value will be negative. The net present value is a linear combination of MIRR and IRR. The net present value will be positive. The project has no cash inflows. The net present value will be zero.
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If the IRR of the project is 15%, then the project's NPV would be: positive at a discount rate of 10%. positive at a discount rate of 18%. negative at a discount rate of 15%. negative at a discount rate of 12%.
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