Which of the following statements is TRUE?

Posted by: Pdfprep Category: CBAF-001 Tags: , ,

Which of the following statements is TRUE?
A . The IRR of every project is based on it achieving a Net Present Value of zero.
B . It is preferable for the calculated IRR of a project to be below bank interest rates.
C . Discounted cash flows do not usually take into account the time value of money.
D . When comparing two projects, the one with the lower NPV should be preferred.

Answer: A

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