alleryStart learning →Two projects give equal returns; one pays earlier. Which has higher IRR?
AThe later-paying one
BThe larger project
CThe earlier-paying one
DNeither can be said
Answer & Solution
Correct answer: C. The earlier-paying one
A return received sooner is worth more, so the project paying earlier shows the higher IRR.
Keep practising Integrated Business Solutions
Browse all Integrated Business Solutions questions for CA Final, or explore more Strategic Management topics.
Related questions
In 1988 Mintzberg found the strategic process to be more?The SWOT matrix is also known as?The discount rate that gives a bond's price as NPV is called its?Applied ex-ante, what does the IRR provide?Rs 1,21,000 arrives in 2 years. At 10% annual discount, present value?Outlay Rs 1,00,000; inflow Rs 1,10,000 after one year; discount rate 10%. NPV?A profitable firm lacks liquidity if assets cannot be quickly?Why must a firm hold positive working capital?