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 %.

Question

Quizplus · Accepted Answer

The Internal Rate of Return (IRR) is a metric used to evaluate the profitability of potential investments. An investment is considered acceptable if its IRR exceeds the required return, as this indicates that the investment is expected to generate a return higher than the minimum threshold set by the investor or the company.

An Investment Is Acceptable If It's IRR