An Investment Is Acceptable If Its IRR

question 20

Multiple Choice

An investment is acceptable if its IRR:

• A) is exactly equal to its net present value (NPV).
• B) is exactly equal to zero.
• C) is less than the required return.
• D) exceeds the required return.
• E) is exactly equal to 100%.

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Definitions:

Health Clinic

A healthcare facility that is primarily focused on the care of outpatients, offering medical services and treatments.

Typewriter Shop

A retail outlet specializing in the sale, repair, and maintenance of typewriters.

Market Equilibrium

The point at which the supply of goods matches demand, causing stable prices.

Incentives

Factors or rewards that motivate individuals or organizations to perform an action or behave in a certain way.