If the Internal Rate of Return (IRR) Is Less Than

question 22

Short Answer

If the internal rate of return (IRR) is less than the required rate of return, the project is __________.

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Definitions:

Rate of Return

The profit or deficit made on an investment within a certain timeframe, shown as a percentage of the original investment's value.

Market Expected Rate

The return investors anticipate receiving from an investment, based on market conditions and asset performance.

Risk-Free Rate

The theoretical rate of return of an investment with zero risk of financial loss, often represented by the yield on government bonds.