Question: Return ( IRR ) method is / are the most correct? a . The IRR is the discount rate that equates the NPV of a
Return IRR method isare the most correct?
a The IRR is the discount rate that equates the NPV of a project with zero.
b The IRR method assumes that cash flows will be reinvested at the cost of capital.
c The IRR method generates three IRRs for a project if its cash flows change sign three times throughout its life.
d Both a and are correct.
e Both b and c are correct.
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
