The Internal Rate of Return Rule Is to Accept the Investment

question 13

True/False

The internal rate of return rule is to accept the investment project if the opportunity cost of capital is less than the internal rate of return. If the cost of capital is equal to the IRR, the project has zero NPV. On the other hand if the cost of capital is greater than the IRR, the project has a negative NPV. The IRR will give the same answer as the NPV. The IRR is defined as the discount rate that will make the NPV of the project equal zero.

---

Definitions:

Accrued Paid Sick Leave

Paid sick leave that an employee has earned over time but has not yet used.

Taft-Hartley Act

A 1947 federal law in the United States that restricts the activities and power of labor unions.

Labor-Management Relations Act

A U.S. law, also known as the Taft-Hartley Act, that restricts the activities and power of labor unions.

Family and Medical Leave Act

U.S. federal law that provides eligible employees with unpaid, job-protected leave for specified family and medical reasons.