Which combination of the following two statements A and R is correct 2 marks Assertion A T...........

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Which combination of the following two statements (A) and (R) is correct ? (2 marks)

Assertion (A) : The IRR of a project is the discount rate which reduces its NPV to zero.

Reason (R) : A project is worth accepting if the IRR exceeds the cost of capital.

Codes :

(A) is right, but (R) is wrong.

Both (A) and (R) are correct.

(A) is wrong, but (R) is correct.

Both (A) and (R) are wrong.

Both (A) and (R) are correct.

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