If IRR minimum desired rate of return, then NPV 0.

Question

If IRR > minimum desired rate of return, then NPV > 0.

Quizplus · Accepted Answer

This statement is true. The internal rate of return (IRR) is the discount rate that makes the net present value (NPV) of an investment equal to zero. If the IRR is greater than the minimum desired rate of return, it means that the investment is expected to generate returns higher than the minimum required, which results in a positive NPV. Therefore, if IRR > minimum desired rate of return, then NPV > 0.

If IRR > Minimum Desired Rate of Return, Then NPV