The relationship between NPV and IRR

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Reference no: EM13919650

The relationship between NPV and IRR is such that:

A. Both approaches always provide the same ranking of alternative investment projects

B. The IRR on an investment is the required rate of return that results in a zero NPV when it s used as the discount rate.

C. If the NPV of a project is negative, the IRR must be greater than the cost of capital.

D. None of the above

Reference no: EM13919650

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