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Which one is correct in case of internal rate of interest (IRR)?

<p>A) Prevailing rate of interest in the market</p> <p>B) Equal to the cost of capital of the proposal</p> <p>C) Paid on the bonds by the firm</p> <p>D) Makes the NPV of capital proposal almost zero</p>

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Question added by Muhammad Javed , Manager Finance , EuroMoto
Date Posted: 2014/12/29
Mir Mujtaba Ali
by Mir Mujtaba Ali , Internal Audit Manager , Confidential

d

Muhammad Javed
by Muhammad Javed , Manager Finance , EuroMoto

Answer: D - - - - Makes the NPV of capital proposal almost zero

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