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nternal rate of return (IRR) has many uses in corporate finance, from estimating yield to maturity of a bond to capital budgeting. Please mark the

nternal rate of return (IRR) has many uses in corporate finance, from estimating yield to maturity of a bond to capital budgeting. Please mark the only correct use of IRR:

a.

IRR is useful for capital budgeting because it gives the analyst an upper bound for your estimated cost of capital for the firm below which the NPV is still positive

b.

When choosing projects, IRR is always right while NPV not always will give you the right answer

c.

IRR is reliable because it always provides the analyst with only one answer

d.

IRR rule is accurate for capital budgeting when cash inflows are followed by outflows

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