You are evaluating an investment project and learn the following: The project’s NPV at a discount...

You are evaluating an investment project and learn the following: The project’s NPV at a discount rate of 16% is +$35,879 The project’s NPV at a discount rate of 20% is +$12,356 The project’s NPV at a discount rate of 22% is -$1,923 Based on (i)-(iii) above you know the project’s IRR must be:

a.

Less than 16%

b.

Greater than 22%

c.

Between 16% and 20%

d.

Between 20% and 22%

e.

Exactly 20%

Expert Solution

IRR Is rate at which NPV of the project is zero

The answer is between 20% and 22%

jeff jeffy answered 1 year ago

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