Which of the Following Statements About the Internal Rate of Return

question 67

Multiple Choice

Which of the following statements about the internal rate of return (IRR) is true?

• A) It has the most conservative and realistic reinvestment assumption.
• B) It never gives conflicting answers.
• C) It fully considers the time value of money.
• D) It is greater than the modified internal rate of return if the discount rate is higher than the IRR.

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