Question: ABCD Corp. has a project whose Internal Rate of Return (IRR) is 8.05%. Which of the following is true? Assume that the project consists of

ABCD Corp. has a project whose Internal Rate of Return (IRR)

ABCD Corp. has a project whose Internal Rate of Return (IRR) is 8.05%. Which of the following is true? Assume that the project consists of an initial investment (outflow) and subsequent earnings (inflow). None of the above all of the other options are incorrect). We need more information than just Internal Rate of Return (IRR) to observe whether the project will be profitable at a given interest/discount rate. The project will have a negative NPV if the interest/discount rate is 8.05%. The project will have a positive NPV if the interest/discount rate is higher than 8.05%

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