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:

Dividends

Money distributed to a company's shareholders, often from its profits.

Holding Period

The duration of time an investment is held before it is sold or disposed of.

Liquidation Value Per Share

The amount of money that would be received per share if all of a company’s assets were sold at their current values and the proceeds distributed to shareholders.

Common Share

A type of stock that signifies ownership in a corporation and represents a claim on part of the company's profits or losses.