If the IRR is less than the minimum desired rate of return, a project is not desirable.

Name: If the IRR is less than the minimum desired rate of return, a project is not desirable.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The Internal Rate of Return (IRR) is a metric used to evaluate the profitability of potential investments. If the IRR is less than the minimum desired rate of return, it means the project is expected to generate returns lower than what the investor deems acceptable, making it not desirable.

If the IRR Is Less Than the Minimum Desired Rate