Sir, in dcf-
you said that we’ll prefer when Npv is positive then we’ll prefer that project.
But in IRR, why do we go for IRR when npv=0
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Even though the NPV is zero IRR is used as there is return on the project which can grow the company without creating wealth to shareholder. NPV=0 also means that even although company didnot create wealth it also didnt destroy the same for the shareholders.
IRR can be used up untill it is higher than kc or npv is positive or 0 as soon as npv becomes negative you must not use IRR.
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