A project's IRR is independent of the firm's cost of capital. In other words, a project's IRR doesn't change with a change in th

Question

koban [17]

2 years ago

9

A project's IRR is independent of the firm's cost of capital. In other words, a project's IRR doesn't change with a change in th

e firm's cost of capital.
A. True
B. False

Business

1 answer:

earnstyle [38] · Answer 1 · 2023-02-08T05:22:16+03:00

A project's IRR doesn't change with a change in the firm's cost of capital. This is true.

IRR stand for the Internal rate of return. The internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested.

The cost of capital is not used in calculating the IRR.

To learn more about IRR, please check: brainly.com/question/26484024