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Homework answers / question archive / Assume that a project has an internal rate of return of 21 percent and a discount rate of 20 percent
Assume that a project has an internal rate of return of 21 percent and a discount rate of 20 percent. Would you expect the NPV of the project to be positive or negative? Should the firm accept the proj- ect? Discuss the resulting NPV when the IRR is below the discount rate and when the IRR is equal to the discount rate. (continuedan royarse side 4. Assume that a project has an internal rate of return of 21 percent and a discount rate of 20 percent. Would you expect the NPV of the project to be positive or negative? Should the firm accept the proj- ect? Discuss the resulting NPV when the IRR is below the discount rate and when the IRR is equal to the discount rate. (continuedan royarse side 4. Assume that a project has an internal rate of return of 21 percent and a discount rate of 20 percent. Would you expect the NPV of the project to be positive or negative? Should the firm accept the proj- ect? Discuss the resulting NPV when the IRR is below the discount rate and when the IRR is equal to the discount rate.