Sir,
In Kaplan book, there is a line said “Projects should be accepted if IRR is greater than the cost of capital “.Could you please tell me what does it mean.
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IRR
10y ago#1If the IRR is greater than the cost of capital, then the NPV will be positive and therefore the project should be completed.
You really do need to watch the free lecture on Investment Appraisal where this is explained (and I really cannot type out the whole lecture here).
Our lectures are a complete course for Paper F2 and cover everything you need to be able to pass the exam well.
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