How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Bizhelp Your Own Question
Bizhelp
Bizhelp, CPA
Category: Single Problem
Satisfied Customers: 5884
Experience:  BA degree and Certified Public Accountant
23848519
Type Your Single Problem Question Here...
Bizhelp is online now
A new question is answered every 9 seconds

The relationship between NPV and IRR is such that: A) both

Resolved Question:

The relationship between NPV and IRR is such that:
A) both approaches always provide the same ranking of alternative investment projects.
B) the IRR of a project is equal to the firm's cost of capital if the NPV of a project is $0.
C) if the NPV of a project is negative, the IRR must be greater than the cost of capital.
D) none of the above
Submitted: 5 years ago.
Category: Single Problem
Expert:  Bizhelp replied 5 years ago.
Hi,

Thanks for the question.

The answer is B) the IRR of a project is equal to the firm's cost of capital if the NPV of a project is $0.

Hope this helps!


If you would like to request me for future posts, please put 'For Bizhelp' at the beginning of them.
Bizhelp and other Single Problem Specialists are ready to help you

Related Single Problem Questions