Complete the following decision rule: A project should be accepted if its ______ exceeds the firm's required rate of return.
A) IRR
B) NPV
C) payback
D) discounted payback
E) AAR

Question

Quizplus · Accepted Answer

The Internal Rate of Return (IRR) is the discount rate that makes the net present value (NPV) of a project zero. A project is accepted if its IRR exceeds the firm's required rate of return, indicating that the project is expected to generate a return greater than the minimum acceptable return.

Complete the Following Decision Rule: a Project Should Be Accepted