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Which of the following are true about making capital budgeting decisions using the internal rate of return? i. If the initial cash flow is an
Which of the following are true about making capital budgeting decisions using the internal rate of return? i. If the initial cash flow is an outflow and each subsequent cash flow is an inflow then you should accept the project if the internal rate of return is greater than the required rate of return. ii. If the initial cash flow is an inflow and each subsequent cash flow is an outflow then you should accept the project if the internal rate of return is greater than the required rate of return. iii. If the initial cash flow is an outflow, the next cash flow is an inflow, and the following cash flow is an outflow, then solving for the internal rate of return will produce more than one solution. iv. The internal rate of return can be calculated by setting the initial cost of the project equal to the present value of the project's future cash flows. ionly ii and iii, but not i or iv i, iii, and iv, but not ii i and iii, but not ii or iv Which of the following are true about making capital budgeting decisions using the internal rate of return? i. If the initial cash flow is an outflow and each subsequent cash flow is an inflow then you should accept the project if the internal rate of return is greater than the required rate of return. ii. If the initial cash flow is an inflow and each subsequent cash flow is an outflow then you should accept the project if the internal rate of return is greater than the required rate of return. iii. If the initial cash flow is an outflow, the next cash flow is an inflow, and the following cash flow is an outflow, then solving for the internal rate of return will produce more than one solution. iv. The internal rate of return can be calculated by setting the initial cost of the project equal to the present value of the project's future cash flows. ionly ii and iii, but not i or iv i, iii, and iv, but not ii i and iii, but not ii or iv
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