- Capital Budgeting
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If the NPV of a project with conventional cash flow is $500 and the required rate of return is 8%, the IRR must be:
A) equal to $500
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B) Less than 8%
C) equal to 8%
d) greater than 8%
e) not enough information provided to accurately choose one of the answers above
Solution selects the correct prediction for IRR in the given scenario.