Question

In: Finance

16. The accept/reject decision rule for the internal rate of return analysis is accept if _____....

16. The accept/reject decision rule for the internal rate of return analysis is accept if _____.

Group of answer choices

a. The IRR is greater than zero

b. The IRR is greater than the required rate of return

c. The IRR is greater than the NPV

d. The IRR is greater than the risk free rate

Solutions

Expert Solution

b. The IRR is greater than the required rate of return

IRR > Required rate of return; Accept

IRR < Required rate of return; Reject


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