Which of the following situations can lead to the IRR rule giving the same decision as...

Which of the following situations can lead to the IRR rule giving the same decision as the NPV rule?

Solutions

Expert Solution

IRR- internal rate of return

NPV- net present value

both irr and npv give same result in decisions making of capital budgeting decisions

when npv is positive ( net present value of cash inflow from project is higher than net cash outflows)

and

irr is acceptable when irr of a particular project is higher than a cutt off rate

jeff jeffy answered 2 years ago

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