alleryStart learning →Comparing one project's IRR with the required rate, in isolation, is equivalent to:
Athe NPV decision rule
Bthe payback method
Cthe ratio analysis rule
Dthe book return method
Answer & Solution
Correct answer: A. the NPV decision rule
For a lone conventional project, IRR above the required rate and positive NPV give the same accept decision.
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Related questions
The same return received later gives an IRR that is:If cash flows are random variables, as in a life annuity, IRR uses their:The AIRR approach of Magni was introduced to solve problems of:In personal finance the IRR measures what type of performance?With no capital constraint, which projects does a firm accept to maximize value?Mutually exclusive projects are those from which:The equivalent annuity method divides the NPV by what to annualize it?The equivalent annuity method is often used to compare projects of: