Which of These Statements About Internal Rate of Return Analysis

question 49

Multiple Choice

Which of these statements about internal rate of return analysis is BEST?

• A)If the IRR is less than the company's required rate of return,the project is worth funding.
• B)Projects having lower IRR are generally superior to those having higher IRR.
• C)IRR and NPV calculations always make the same investment recommendations.
• D)If net outflows follow a period of net inflows,IRR may give conflicting results.

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Definitions:

Crown

represents the state or monarch in its governmental and symbolic functions, especially in Commonwealth countries.

Tenancy

A relationship between parties governed by a lease.

Right of Way

A right, recognized through long-standing practice or given permission, to use a particular path across someone else's land or property.

Boathouse

A structure designed to store boats, typically located near a body of water.