If the Net Present Value of a project equals to zero then:Select one:a. There is no way to estimate the IRRb. The IRR is less than the cost of capitalc. The IRR is equal to the cost of capitald. The IRR is larger than the cost of capital

Select Any One Of the Following Options: If Net Present Value for a project is negative, thenProfitability Index > 1IRR < Cost of CapitalIRR = Cost of CapitalIRR > Cost of Capital

Question 3IRR = a% + NPVa (b%-a%)NPVa- NPVbAnglo Ltd has a cost of capital of 12% and it has appraised two projects.Project A has a positive NPV of €5,000 when discounted at 12%and a positive NPV of €3,600 when discounted at 16%.Project B has a positive NPV of €8,000 when discounted at 12%and a negative NPV of €1,000 when discounted at 16%.The projects are mutually exclusive.Required:What is the IRR of Project A and B?• Project A has an IRR of 26.3% and B an IRR of 16.5%• Project A has an IRR of 26.3% and B an IRR of 15.6%• Project A has an IRR of 14.3% and B an IRR of 16.5%• Project A has an IRR of 14.3% and B an IRR of 15.6%Which of the following statements is correct?• Both NPV and IRR indicate that Project A is the more financially viable project.• In order to maximise shareholder wealth Project A is the better project.• Neither Project A or Project B should be accepted from a financial perspective.• Project B will increase shareholder wealth more than Project A at the current cost of capital.

You are considering investing in a start-up project at a cost of $102,000. You expect the project to return $494,000 to you in 9 years. Given the risk of this project, your cost of capital is 15%. What is the IRR for this project?

An investor is considering three projects, A, B and C summarized in the table below.  Investment cost Annual operating profit Project life (years)Project A -70000 17000 5Project B -90000 15000 8Project C -60000 13000 6Suppose the investor can borrow funds at an interest rate of 6%, by using the NPV rule with a 5% discount rate, he should choose project _____. When using the IRR rule, he should ____ this project.

Consider a project with the following annual cash flows: -$100 (at t=0) and $300 (at t=5). What is the IRR of this project?[Answer: Percentage number. If the answer is 12.34% write either 12.34 (number with 2 decimals) or 0.1234 (number with 4 decimals). Do not include ‘%’.]