Question
Which of the following statements related to the internal rate of return (IRR) is/are correct? I. The IRR is equal to the required return which
Which of the following statements related to the internal rate of return (IRR) is/are correct? I. The IRR is equal to the required return which makes the net present value positive. II. An investment project with an IRR higher than its required return should be accepted III. The IRR method is a better method of analysis than the average accounting return from a financial point of view. IV. The IRR method does not always yield the same accept and reject decisions as the net present value method given mutually exclusive projects.
Multiple Choice
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II, III and IV only
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I, II, and III only
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III and IV only
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I and II only
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I, II, III and IV
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