Based on business systems, it is False that if the internal rate of return is less than the required rate of return for a project, then the net present value of that project is positive.
Internal Rate of Return is the term used in business to describe the method of evaluating an investment’s rate of return.
Generally, the term internal refers to the fact that the calculation excludes external factors, such as the risk-free rate, inflation, the cost of capital, or financial risk.
It is technically believed that if the internal rate of return is less than the required rate of return for a project, then the net present value of that project is negative.
Therefore, in this case, it is concluded that the correct answer is False.
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