When a project\'s internal rate of return equals its opportunity cost of capital
ID: 2636068 • Letter: W
Question
When a project's internal rate of return equals its opportunity cost of capital, then:
The net present value will be negative.
The net present value is a linear combination of MIRR and IRR.
The net present value will be positive.
The project has no cash inflows.
The net present value will be zero.
The net present value will be negative.
The net present value is a linear combination of MIRR and IRR.
The net present value will be positive.
The project has no cash inflows.
The net present value will be zero.
Explanation / Answer
The net present value will be zero.