General Studies · Capital Budgeting under Risk
Assuming a project has a standard initial cash outflow followed by a conventional stream of positive inflows, which formula correctly expresses the interpolation of Internal Rate of Return (IRR)?
- 1IRR = H - NPVLNPVH × (H - L)
- 2IRR = L + NPVL - NPVHNPVL × (H - L)
- 3IRR = H + NPVHNPVL - NPVH × (H - L)
- 4IRR = L + NPVLNPVL - NPVH × (H - L)✓
Correct answer
IRR = L + NPVLNPVL - NPVH × (H - L)
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Preparing for General Studies?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Want more practice questions on Capital Budgeting under Risk?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in General Studies · Capital Budgeting under Risk