The Internal Rate of Return (IRR)and the Net Present Value

question 20

Multiple Choice

The internal rate of return (IRR) and the net present value (NPV) are tools that are widely used in real estate investment and finance decision making.An investor would most likely pursue an investment if which of the following circumstances was true?

• A)The going-in IRR exceeds the investor's required rate of return.
• B)The going-in IRR is less than the investor's required rate of return.
• C)The NPV is negative.
• D)The NPV is equal to zero.