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Why does IRR set NPV to zero?

By IndianMoney , 5 months ago

1. When the rate of interest equals to IRR, the NPV is Zero or better to say the VALUE of your investment in present is Zero. 2. If the rate of interest is equal to the cost of capital then it is referred as Internal Rate of Return or IRR and the project have zero NPV meaning your project won't be losing money at least.

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