Which one of the following is an indicator that an investment is acceptable? Assume cash flows are conventional.
A)Modified internal rate of return that is equal to zero
B)Profitability index of zero
C)Internal rate of return that exceeds the required return
D)Payback period that exceeds the required period
E)Negative average accounting return

Question

Quizplus · Accepted Answer

An investment is considered acceptable if its internal rate of return (IRR) exceeds the required return, as it indicates that the investment is expected to generate a return greater than the minimum acceptable return.

Which One of the Following Is an Indicator That an Investment