When Using the Internal Rate of Return Method to Evaluate

question 116

True/False

When using the internal rate of return method to evaluate investment projects,if the internal rate of return is less than the required rate of return,the project should be accepted.

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Definitions:

AFC

stands for Average Fixed Cost, which is the fixed cost per unit of output, calculated by dividing total fixed costs by the quantity of output produced.

Output Rises

Refers to an increase in the production level of goods and services over a certain period.

Output Rises

An increase in the production of goods and services within an economy.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service relative to its market price.