A project's IRR is independent of the firm's cost of capital. In other words, a project's IRR doesn't change with a change in the firm's cost of capital.
A. True
B. False

Question

14-04-2022
Business

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A project's IRR is independent of the firm's cost of capital. In other words, a project's IRR doesn't change with a change in the firm's cost of capital.
A. True
B. False

Respuesta :

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ewomazinoade ewomazinoade · Answer 1 · 2022-04-26T11:33:03+02:00

A project's IRR doesn't change with a change in the firm's cost of capital. This is true.

What is IRR?

IRR stand for the Internal rate of return. The internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested.

The cost of capital is not used in calculating the IRR.

To learn more about IRR, please check: https://brainly.com/question/26484024

A project's IRR is independent of the firm's cost of capital. In other words, a project's IRR doesn't change with a change in the firm's cost of capital. A. True B. False

Respuesta :

What is IRR?

Otras preguntas

A project's IRR is independent of the firm's cost of capital. In other words, a project's IRR doesn't change with a change in the firm's cost of capital.
A. True
B. False