Answered: If the internal rate of return (IRR) is…

If the internal rate of return (IRR) is less than the cost of capital, then the investment is acceptable. Group of answer choices True False

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter12: Investing In Stocks And Bonds

Section: Chapter Questions

Problem 2LO

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Question

If the internal rate of return (IRR) is less than the cost of capital, then the investment is acceptable.

Group of answer choices

True

False

Definition Definition Discount rate of a project wherein its net present value equals zero. Internal rate of return equates the present value of future cash flows with the initial investments. Internal rate of return helps to determine nominal cash flows.

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