Internal Rate of Return vs Discount Rate
You are considering an investment that will cost $20,000. If one uses a discount rate of 5%, the NPV of this investment is 18,000 dollars. Is the IRR of this investment greater or less than 5%? Briefly explain.
Answer
Answers can only be viewed under the following conditions:
- The questioner was satisfied with and accepted the answer, or
- The answer was evaluated as being 100% correct by the judge.
Blue
167
The answer is accepted.
Join Matchmaticians Affiliate Marketing
Program to earn up to a 50% commission on every question that your affiliated users ask or answer.
- answered
- 777 views
- $5.00
Related Questions
- Algebra Word Problem 3
- Algebra Word Problem 2
- Algebra Word Problem 1
- The last six digits of the number $30001^{18} $
- Let $z = f(x − y)$. Show that $\frac{\partial z}{\partial x}+\frac{\partial z}{\partial y}=0$
- Closest Points on Two Lines: How to use algebra on equations to isolate unknowns?
- Find the coordinates of the point $(1,1,1)$ in Spherical coordinates
- Center of algebra of functions