Which of the following statements is TRUE?

Question

Options

• AThe IRR of every project is based on it achieving a Net Present Value of zero.
• BIt is preferable for the calculated IRR of a project to be below bank interest rates,
• CDiscounted cash flows do not usually take into account the time value of money.
• DWhen comparing two projects, the one with the lower NPV should be preferred.

• A
  76% (47)
• B
  8% (5)
• C
  5% (3)
• D
  11% (7)

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