Question

if rate of discounting is more than IRR then npv will be​

Answer 1

Explanation:

Discount rate (k) is the expected return. IRR is the discount rate at which NPV=0. If k > IRR then, NPV will be negative. All it means is that you will not realize your expected return with the investment. If you still want to earn a return of k, then you have to two choices, A) reduce the investment in the project, or B) find way to increase future cash flow from the project. If you can not do A or B, then you have two choice, C) reduce your expected return to IRR, or D) do not proceed with the project.