Register
If a project has a positive net present value, its internal rate of return will exceed the firm's hurdle rate.True or false?
159k views
4 votes
If a project has a positive net present value, its internal rate of return will exceed the firm's hurdle rate.True or false?

User TomHastjarjanto
by
3.5k points

1 Answer

3 votes

Answer:

True

Step-by-step 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.

User Sjmartin
by
3.1k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

3.3m questions

4.3m answers

Other Questions

How can expansionary​ expenditure-based fiscal policy lead to crowding out in the​ economy? A. ​Expenditure-based fiscal policy increases the national​ debt, inducing​ forward-looking households and firms
Stevenson Company purchased equipment for $250,000 on January 1, 2010. The estimated salvage value is $50,000, and the estimated useful life is 5 years. The straight-line method is used for depreciation.
The method of appraisal in which the appraiser estimates the replacement cost of the building, deducts depreciation, and adds the value of the site is:________
The Yum and Yee food truck near the business school serves customers during lunch hour by taking orders and making fresh batches of stir-fry. Customers have only one choice during the lunch hour so that
Robusta Coffee Importers sold 7000 units in October at a sales price of $45 per unit. The variable cost is $20 per unit. The monthly fixed costs are $8000. Using the contribution income statement format,
Link Copied!