General Studies · Financial Management
If a conventional project has a positive NPV of 5,000 at a 10% discount rate, what can be definitively concluded about the project's internal rate of return (IRR)?
- 1The IRR must be less than 10%
- 2The IRR must be greater than 10%✓
- 3The IRR must be exactly 15%
- 4The IRR must be exactly 10%
Correct answer
The IRR must be greater than 10%
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