General Studies · Capital Budgeting
If a project has a required rate of return of 6%, which of the following statements is correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The project will be accepted if the IRR is greater than 6%✓
- 2The NPV will be negative if the IRR is greater than 6%
- 3The project will be rejected if the IRR is equal to 7%
- 4The NPV will be positive if the IRR is equal to 5%
Correct answer
The project will be accepted if the IRR is greater than 6%
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