Which of these statements about internal rate of return analysis is best?
A. If the IRR is less than the company’s required rate of return, the project is worth funding.
B. Projects having lower IRR are generally superior to those having higher IRR.
C. IRR and NPV calculations always make the same investment recommendations.
D. If net outflows follow a period of net inflows, IRR may give conflicting results.
Answer:D
Which of these statements about internal rate of return analysis is best?
A. If the IRR is less than the company’s required rate of return, the project is worth funding. B. Projects having lower IRR are generally superior to those having higher IRR. C. IRR and NPV calculations always make the same investment recommendations. D. If net outflows follow a period of net inflows, IRR may give conflicting results.