Question

Project A has an Internal rate of return(IRR) of 21%. Project B an IRR OF 7% Project C and IRR of 31% and Project D an IRR of 19%. Which of the Projects would be BEST project? a. B b. C c. A d. B

Answer 1

b. C

Step-by-step explanation:

It is the rate at which the net present value of all cash flows will be zero. As we know that the higher the discount rate lower will be the present value. The benefit of Higher IRR is company would expect higher rate of return from that project.

Project A has an Internal rate of return(IRR) of 21%.

Project B an IRR of 7%

Project C and IRR of 31%

and Project D an IRR of 19%

Project C will be best because it has highest IRR.