Vidyalelo
Commerce · Q285

Business Finance

Graduate and Post Graduate · Commerce · question 285

Q285

Which combination of the following two statements (A) and (R) is correct? Assertion (A): The IRR of a project is the discount rate which reducesits NPV to zero. Reason (R): A project is worth accepting if the IRR exceeds the cost of capital.

A.
(A) is right, but (R) is wrong
B.
Both (A) and (R) are correct
Answer
C.
(A) is wrong, but (R) is correct
D.
Both (A) and (R) are wrong

Answer: Option B

Solution

Answer: Option B
No explanation is given for this question Let's Discuss on Board