Question

The NPV for the various project is given as follows; Project A : - 10,000/- , Project B : - 20,000/-, Project C : 3,000/-, Project D : 5,000 /-, Which project to be selected first ?

B

A

D

C​

Answer 1

Answer:

If the NPV of a project is greater than 0, its PI will equal 0. If the IRR of a project is 0%, its NPV, using a discount rate, k, greater than 0, will be 0. If the PI of a project is less than 1, its NPV should be less than 0.