An investment is acceptable if it's IRR:
A) Is exactly equal to its net present value (NPV).
B) Is exactly equal to zero.
C) Is less than the required return.
D) Exceeds the required return.
E) Is exactly equal to 100 percent.

Question

Quizplus · Accepted Answer

An investment is acceptable if its IRR exceeds the required return. This means that the investment is generating a return that is higher than the minimum rate required by investors to compensate for the risks involved. In other words, the investment is profitable and worth pursuing.

An Investment Is Acceptable If It's IRR