When the internal rate of return is the same as the required rate of return,the net present value of an investment will be positive.

Question

Quizplus · Accepted Answer

When the internal rate of return (IRR) is the same as the required rate of return, the net present value (NPV) of an investment will be zero, not positive. This is because the NPV equals zero when the discount rate equals the IRR, indicating that the investment exactly breaks even with the required rate of return.

When the Internal Rate of Return Is the Same as the Required