Which of the Following Statements About the Internal Rate of Return

question 10

Multiple Choice

Which of the following statements about the internal rate of return method is false?

• A)The internal rate of return is equal to the required rate of return when the net present value is equal to zero.
• B)The internal rate of return is greater than the required rate of return when the net present value is negative.
• C)The internal rate of return represents the expected rate of return on a project.
• D)The internal rate of return is the discount rate that forces the present value of a project's inflows to equal its outflows.

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