1) In IRR method the cash flows from a project are reinvested at the cost of capital. II) IRR is the rate at which present value of cash inflows is equal to the amount of initial investment. I) It is the rate at which the NPV of the project is positive. IV) IRR method is based on concept of time value of mone V) In IRR method the cash flows from a project are reinvested at the IRR itself. Which of the following statements are incorrect about Internal rate of return (IRR A III and I B. III and C. L III and I D. I onl y.V. VV.):y. D. I only.
1) In IRR method the cash flows from a project are reinvested at the cost of capital. II) IRR is the rate at which present value of cash inflows is equal to the amount of initial investment. I) It is the rate at which the NPV of the project is positive. IV) IRR method is based on concept of time value of mone V) In IRR method the cash flows from a project are reinvested at the IRR itself. Which of the following statements are incorrect about Internal rate of return (IRR A III and I B. III and C. L III and I D. I onl y.V. VV.):y. D. I only.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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1) In IRR method the cash flows from a project are reinvested at the cost of capital. II) IRR is the rate at which
I) It is the rate at which the
V) In IRR method the cash flows from a project are reinvested at the IRR itself. Which of the following statements are incorrect about
A III and I
B. III and
C. L III and I
D. I onl
y.V. VV.):y.
D. I only.
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