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

Question

Quizplus · Accepted Answer

If the IRR is greater than the required rate of return, it means that the project's cash flows are generating a return higher than the cost of capital. Therefore, the net present value of the project would be positive, indicating that the project is expected to generate wealth for investors. Therefore, the correct option is B, greater than zero.

If the IRR on a Project Is Greater Than the Required