An Investment Is Acceptable If Its IRR

question 20

Multiple Choice

An investment is acceptable if its IRR:

• A) is exactly equal to its net present value (NPV).
• B) is exactly equal to zero.
• C) is less than the required return.
• D) exceeds the required return.
• E) is exactly equal to 100%.

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Definitions:

Implied-In-Law

A term or condition not expressly stated but assumed to exist due to the nature of the transaction or the parties’ relationship, as recognized by law.

Restatement of the Law

A set of treatises on legal subjects that seek to inform judges and lawyers about general principles of common law.

American Law Institute

An organization that produces scholarly work to clarify, modernize, and otherwise improve the law, including issuing Restatements of the Law.

Binding Contract

An agreement between two or more parties that is legally enforceable in a court of law.