The decision rule for internal rate of return (IRR) when unlimited funds are available is:
A) pursue any investment with an IRR

Question

The decision rule for internal rate of return (IRR) when unlimited funds are available is:
A) pursue any investment with an IRR < 0.
B) pursue any investment with a IRR ≥ 0.0.
C) pursue any investment with a IRR ≥ discount rate.

Quizplus · Accepted Answer

The IRR decision rule states that a project should be pursued if its IRR is greater than or equal to the discount rate, as it indicates the project is expected to generate a return greater than the cost of capital.

The Decision Rule for Internal Rate of Return (IRR) When