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If IRR rate increase NPV will

A- not change 

B- Increase 

c- decrease 

d- there are not any relation 

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Question ajoutée par Ahmed kandil , Cost Controller , Battour Holding Cpompany
Date de publication: 2015/03/23
Utilisateur supprimé
par Utilisateur supprimé

B - Increase, as IRR is a rate at which NPV is zero, i.e., cash outflow and cash inflow is equal.

Hence when IRR increase so does NPV, so we choose project, which have higher IRR.

Jawad Rana
par Jawad Rana , MANAGER CUSTOMER SERVICES & OPERATIONS , UNITED BANK LIMITED

IF IRR INCREASES PV WILL INCREASES SO AS NPV SO B IS CORRECT OPTION.

Ahmed kandil
par Ahmed kandil , Cost Controller , Battour Holding Cpompany

C is the correct answer 

thanks 

Mohammed Shahid Ullah
par Mohammed Shahid Ullah , Executive Director (Finance) , Coal Power Generation Company Bangladesh Limited

The increase of IRR do not any relation of NPV. But in decision making process, NPV must be higher then IRR.

VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
par VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

ANSWER OPTION  >>>>>>>>>>>>    c- decrease

Utilisateur supprimé
par Utilisateur supprimé

If IRR rate increase NPV will Increase

Muhammad Ramzan Tufail  ACCA
par Muhammad Ramzan Tufail ACCA , Assistant Finance Manager , Eltizam Asset Management Group

(B) is the Correct Ans.

 

Increase,.....

FITAH MOHAMED
par FITAH MOHAMED , Financial Manager , FUEL AND ENERGY CO for transportion petroleum materials

B->>>>>>>>>>>>>>>>>>>>>>>> Increase

Md Fazlur Rahman
par Md Fazlur Rahman , Procurement Specialist , Engineering and Planning Consultants Ltd

NPV will be zero at a certain IRR. Now when IRR increases, the NPV will decrease.

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