Question

For a project with conventional cash flows, the NPV is Blank______ if the required return is less than the IRR, and it is Blank______ if the required return is greater than the IRR.

Multiple choice question.

positive, negative


negative, positive


positive, positive


negative, negative

Answer 1

For a project with conventional cash flows, the NPV is **positive** if the required return is less than the IRR, and it is **negative** if the required return is greater than the IRR.

So the correct answer is:

**positive, negative**