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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