If the internal rate of return exceeds the discount rate, the net present value is:
A) Zero
B) Less than one
C) Positive
D) Negative

Question

Quizplus · Accepted Answer

If the internal rate of return exceeds the discount rate, it means that the project is generating a rate of return higher than the cost of capital. As a result, the net present value of the project will be positive, indicating that the project is potentially profitable. Therefore, the best choice is C.

If the Internal Rate of Return Exceeds the Discount Rate