Suppose you used the IRR Excel function to determine whether an investment now would create enough profits in the future to be wise and it showed the IRR to be 8%. This investment is
A)Wise at any interest rate
B)Unwise at any interest rate
C)Wise at interest rates above 8% and unwise at interest rates below 8%
D)Wise at interest rates below 8% and unwise at interest rates above 8%

Question

Quizplus · Accepted Answer

If the IRR is 8%, it means that the investment will result in a positive net present value (NPV) when the discount rate is lower than 8%. Therefore, the investment is wise at interest rates below 8% and unwise at interest rates above 8%.

Suppose You Used the IRR Excel Function to Determine Whether