If the IRR on a project is greater than the required rate of return,then the net present value of the project is ________.
A) equal to zero
B) less than zero
C) greater than zero
D) none of the above

Question

Quizplus · Accepted Answer

If the IRR is greater than the required rate of return, it implies that the project is generating a rate of return that exceeds its opportunity cost of capital. This means that the net present value of the project is positive, indicating that the project is expected to create value for the investor. Therefore, the correct choice is C.

If the IRR on a Project Is Greater Than the Required