NO.PZ202309050600000102
问题如下:
With regard to Project A and Project B, which of the following is true?
选项:
A.Both projects should be invested in according to the IRR decision rule
Both projects should be invested in according to the NPV decision rule
Only Project B should be invested in according to the IRR decision rule.
解释:
C is correct. The IRR decision rule is to invest if the IRR exceeds the required rate of return or hurdle rate. Project B’s IRR is 8.97%, which exceeds the required rate of return of 8%; however, Project A’s IRR is 7.04%, which is below the required rate of return of 8%.
The NPV of both projects can be calculated as follows:
Using the same equation, we can solve for the IRRs by assuming that NPV = 0.
A is incorrect because Project B’s IRR is 8.97%, which exceeds the required rate of return of 8%; however, Project A’s IRR is 7.04%, which is below the required rate of return of 8%. Consequently, only Project B meets the IRR decision rule.
B is incorrect because the NPV decision rule is to invest if the NPV is greater than 0. Project B’s NPV is $1.12 million, while Project A’s NPV is –$0.38. Consequently, only Project B meets the NPV decision rule.
想问下IRR用计算器怎么算