Project A involves an investment of $1M and project B involves an investment of $2M Both projects have a unique internal rate of return of 20% Is the following statement true or false?

Explain “For any discount rate between 0 and 20% project B has an NPV of twice project A“.

Answer rating: 100% (QA)

From the given information it is clear that the IRR for both projects is at 20 and the ini... View the full answer