Which of the Statements Below Describes the IRR Decision Criterion

question 75

Multiple Choice

Which of the statements below describes the IRR decision criterion?

• A)The decision criterion is to accept a project if the IRR falls below the desired or required return rate.
• B)The decision criterion is to reject a project if the IRR exceeds the desired or required return rate.
• C)The decision criterion is to accept a project if the IRR exceeds the desired or required return rate.
• D)The decision criterion is to accept a project if the NPV is positive.

---

Definitions:

Rebuilt/Exchange Unit

Refurbished equipment or components that have been restored to working order and are often exchanged for a non-functioning unit.

Differential Carrier

The housing that contains the gears of a vehicle's differential, which allows the wheels to rotate at different speeds.

Shim Pack Thickness

The total combined thickness of a set of shims, used to adjust clearances or alignments in machinery.

Gear Lube Viscosity

Refers to the thickness or resistance to flow of gear lubricants, important for ensuring the correct lubrication properties for gears and transmissions.