Q107
Which of the following statement is true if the Net Present Value (NPV) of a positive?
A.
The IRR must be greater than 0.
AnswerB.
The discount rate exceeds the cost of capital.
C.
The profitability index equals 1
D.
Accepting the project has an indeterminate effect on shareholders
Answer: Option A
Solution
Answer: Option A
Solution:
The IRR must be greater than 0 is true if the Net Present Value (NPV) of a positive.