A Company That Is Using the Internal Rate of Return

question 31

Multiple Choice

A company that is using the internal rate of return (IRR) to evaluate projects should accept a project if its IRR:

• A)is greater than the hurdle rate.
• B)is greater than or equal to the firm's hurdle rate.
• C)is greater than zero.
• D)is less than the firm's cost of investment capital.
• E)equates the present value of the project's cash inflows with the present value of the project's cash outflows.

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