Question 140 IRR, NPV, profitability index
A project has an internal rate of return (IRR) which is greater than its required return. Select the most correct statement.
(a) The NPV will be negative and the profitability index will be less than 1.
(b) The NPV will be positive and the profitability index will be more than 1.
(c) The payback period will be positive and the Accounting Rate of Return will be more than the target return.
(d) The NPV will be positive and the profitability index will be negative.
(e) The NPV will be negative and the profitability index will be positive.