For a Project, the cost benefit ratio is equal to one, then:

CS Executive · Financial and Strategic Management · PYQS · June 2021
For a Project, the cost benefit ratio is equal to one, then:
(A) IRR will be greater than one
(B) IRR will be greater than discount rate
(C) IRR will be lesser than discount rate
(D) IRR will be equal to discount rate

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Capital Budgeting

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