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:

Gastrocnemius

A major calf muscle that flexes the knee and aids in the plantar flexion of the foot.

Biceps Brachii

A muscle of the upper arm that functions to flex the elbow and rotate the forearm, comprised of two heads.

External Oblique

A muscle located in the abdomen that helps in rotating the trunk and flexing the spine.

External Oblique

A muscle located on the lateral and anterior parts of the abdomen, involved in the movement and support of the trunk.