00:01
Hello students, here is a question, if the irr for a project is 15%, then project npv would be negative at a discount rate of 10%, positive at a discount rate of 20%, negative at a rate of 20%, positive at discount rate of 15%.
00:16
This is our first question and the second question is, what is the irr for a project that cost $100 ,000 and provide annual cash inflow of $30 ,000 for 6 years starting 1 year from today? so we have 4 options given here, we have to choose the right option from this.
00:34
So the correct answer is, for the first one, it is positive at a discount rate of 15%.
00:40
So it will be positive at a discount rate of 15%.
00:53
So this is because the irr represents the discount rate at which the project npv is equal to 0.
01:00
So if the irr is 15%, then the project npv will be positive.
01:08
Npv is positive, that is of 15%, so then we call it as, which is equal to 0.
01:22
So if irr is 15%, then the project of npv will be positive.
01:31
When the discount of a rate lower than 15%, such as 10 % and negative when discount rate is higher than 15%.
01:38
If irr is 15%, the project is positive...