There Are Two Basic Steps in Calculating the Internal Rate

question 82

Multiple Choice

There are two basic steps in calculating the Internal Rate of Return. Which of the following represents those two steps?

• A) (1) Compute the PV factor for the project and (2) compare it to the hurdle rate.
• B) (1) Compute the PV factor for the project and (2) identify the discount rate.
• C) (1) Identify the discount rate and (2) compare the IRR to the hurdle rate.
• D) (1) Compare IRR to the hurdle rate and (2) accept or reject the project.
• E) (1) Select the hurdle rate and (2) compute the PV factor for the project.

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