For the Internal Rate of Return to Rank Projects the Same

question 120

Multiple Choice

For the internal rate of return to rank projects the same way as the net present value rule,which condition must exist?

• A)The cutoff rate used for the internal rate equals the cost of capital.
• B)Projects are mutually exclusive.
• C)Projects have different lives.
• D)There must be more than one internal rate of return.

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