An investment is acceptable if the IRR exceeds the required-01228
This subjective question is related to the book/course vu eng101 English Comprehension. It can also be found in vu eng101 Mid Term Solved Past Paper No. 1.
Question 1: "An investment is acceptable if the IRR exceeds the required return. It should be rejected otherwise." Explain.
NPV = -$100 + 110/(1 + R)
Answer:
oNow for our example, NPV for the investment at discount rate R is:NPV = -$100 + 110/(1 + R)