The Internal Rate of Return (IRR) Rule Can Be Best

question 84

Multiple Choice

The internal rate of return (IRR) rule can be best stated as:

• A) An investment is acceptable if its IRR is exactly equal to its net present value (NPV).
• B) An investment is acceptable if its IRR is exactly equal to zero.
• C) An investment is acceptable if its IRR is less than the required return, or else it should be rejected.
• D) An investment is acceptable if its IRR exceeds the required return, or else it should be rejected.
• E) An investment is acceptable if its IRR exceeds its depreciation rate.

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Definitions:

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Relating to or affecting the muscles of the body, or having well-developed muscles.

-ar

A suffix used in medical terminology to denote pertaining to or related to something, such as cellular (pertaining to cells).

-oid

A suffix used in English to form adjectives or nouns indicating similarity or resemblance to something.

-al

a suffix denoting pertaining to or relating to something, often forming adjectives from nouns.