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A project's cash flows are discounted by 16% and result is a positive net present value. The positive net present value indicates that the project?

a) Has an Internal rate of return greater than16%

B) Has an internal rate of return equal to investment

c) Has an internal rate of return less than16%

d) None of the above.

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Question ajoutée par Mohammed Asim Nehal , M Asim Nehal & Co , Chartered Accountants
Date de publication: 2015/08/01
sudhir pv
par sudhir pv , Chief Accountant , GM-BAHRAIN

NPV is postive means project is profitable. NPV is positive when initial outlay is less then the present value

Utilisateur supprimé
par Utilisateur supprimé

The positive net present value indicates that the project's internal rate of return is greater than 16%. It also indicates that the project's profitability index is greater than 1.

MUHAMMAD NAZEER
par MUHAMMAD NAZEER , Banking Services Officer , ALLIED BANK LIMITED

(a) has an internal rate of return greater than16%

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