The Investment Rule with the Internal Rate of Return States

question 24

Multiple Choice

The investment rule with the Internal Rate of Return states:

• A) Take any investment opportunity whose IRR is less than the opportunity cost of capital. Turn down any opportunity whose IRR exceeds the opportunity cost of capital.
• B) Forego any investment opportunity whose IRR exceeds the opportunity cost of capital. Take any opportunity whose IRR is less than the opportunity cost of capital.
• C) Take any investment opportunity whose IRR exceeds the opportunity cost of capital. Turn down any opportunity whose IRR is less than the opportunity cost of capital.
• D) None of the above

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