Project a has an irr of 15 project b has an irr of 14 both


Project A has an IRR of 15%. Project B has an IRR of 14%. Both projects have a required rate of return of 12%. Which of the following statements is most correct?

a. Both projects have a positive NPV.

b. Project A must have a higher NPV than Project B.

c. If the required return wereless than 12%, Project B would have a higher IRR than Project A.

d. Project B has a higher profitability index than Project A.

 

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Finance Basics: Project a has an irr of 15 project b has an irr of 14 both
Reference No:- TGS0601155

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