If the Internal Rate of Return Exceeds the Required Rate

question 53

True/False

If the internal rate of return exceeds the required rate of return for a project, then the net present value of that project is positive

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Definitions:

Sales

The total revenue earned from the sale of goods or services related to a company's primary operations.

Manufacturing Cycle Efficiency

A measure of the efficiency of the production process, calculated as value-added time divided by the total cycle time.

Value-added Time

The period during which a product or service is being modified or enhanced to increase its value to the customer.

Residual Income

Residual income is the amount of income that an individual or business has after all personal debts and expenses, including a mortgage, have been paid.