If the Internal Rate of Return (IRR) of an Investment

question 123

True/False

If the internal rate of return (IRR) of an investment is below the hurdle rate, the project should be accepted.

---

Definitions:

Profit

The financial benefit gained when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Restriction

A rule or condition that limits or controls what can be done.

Quantity

The amount or number of material or immaterial things considered as a unit.

Sum

The total obtained by adding together a set of numbers or quantities.