Which of the Following Is True Regarding the Internal Rate

question 140

Multiple Choice

Which of the following is true regarding the internal rate of return for a project?

• A) If the internal rate of return is less than the required rate of return, the project will be rejected.
• B) If the internal rate of return is equal to the required rate of return, the net present value of the project is zero.
• C) If the internal rate of return is more than the required rate of return, the project will be accepted.
• D) Managers may believe (in most cases, incorrectly) that the internal rate of return is the compounded rate of return earned by the initial investment.
• E) All of these.

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