alleryStart learning →Project IRR differs from equity IRR because equity IRR considers returns:
Aon total assets only
Bbefore any tax charged
Cto shareholders after debt
Dexcluding all dividends
Answer & Solution
Correct answer: C. to shareholders after debt
Equity IRR looks at what shareholders receive once lenders have been paid, whereas project IRR looks at the project's own flows.
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Related questions
The same return received later gives an IRR that is:If cash flows are random variables, as in a life annuity, IRR uses their:The AIRR approach of Magni was introduced to solve problems of:In personal finance the IRR measures what type of performance?With no capital constraint, which projects does a firm accept to maximize value?Mutually exclusive projects are those from which:The equivalent annuity method divides the NPV by what to annualize it?The equivalent annuity method is often used to compare projects of: