If the IRR for a project is 20%, then the project's NPV would be:

Expert Solution

If the IRR for a project is 20%, then the project's NPV would be ZERO

-The Internal Rate of Return (IRR) is the rate at which the present value of the annual cash inflows is equals to the Present value of annual cash outflows.

- Net Present Value [NPV] method is the one of the most commonly used method for taking capital budgeting decisions with respect to the investment proposals.

- The NPV Indicates the value of the investment project or the net worth of the investments to the firm .Net Present Value [NPV] is the difference between the total present value of the annual cash inflows and present value of the cash outflows

-If the NPV is Zero, it means that the total present value of the annual cash inflows equals the total present value of cash outflows

-The NPV method determines that the how much value that the Investment or projects added to the firms value and NPV is consistent with maximizing firm value.

jeff jeffy answered 10 months ago

What is the project's NPV.

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