The internal rate of return (IRR) measures the profitability of investments as a return percentage.true or false

A firm utilizes a strategy of capital rationing, which is currently $375,000 and is considering the following two projects: Project A has a cost of $335,000 and the following cash flows: year 1 $140,000; year 2 $150,000; and year 3 $100,000. Project B has a cost of $365,000 and the following cash flows: year 1 $220,000; year 2 $110,000; and year 3 $150,000. Using a 6% cost of capital, which decision should the financial manager make?

Multiple Choice

• Select project A.

• Select project B.

• Do not select either project.

• Select both projects.

it is more likely for financial managers to focus on cash flow and corporate executives to focus on the earnings of the company.

True or False