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lisabon 2012 [21]
3 years ago
12

If a project has a positive net present value, its internal rate of return will exceed the firm's hurdle rate.True or false?

Business
1 answer:
Anvisha [2.4K]3 years ago
8 0

Answer:

True

Explanation:

When a project has a positive net present value(NPV), it means that its NPV is greater than 0 hence you accept it . The Internal rate of return (IRR) of that project would also be greater than the cost of capital (hurdle rate). If the cashflows are conventional, the net present value rule and IRR rule are usually in agreement when making a decision on potential projects.

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