Question: Consider the relationship between a projects net present value (NPV), its internal rate of return (IRR), and a companys cost of capital. For each scenario
(IRR), and a companys cost of capital. For each scenario that follows, indicate the relative value of the unknown. If cost of capital is unknown, indicate whether it would be higher or lower than the stated IRR. If NPV is unknown, indicate whether it would be higher or lower than zero.
Project 1 is shown as anexample.
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Net Present Value Cost of Capita Internal Rate of Return 0 < 0 10
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