In which of the following situations will a project never be accepted?
A)Internal rate of return is less than the discount rate
B)Internal rate of return is equal to the discount rate
C)Internal rate of return is greater than the discount rate
D)Internal rate of return is greater than zero

Question

Quizplus · Accepted Answer

A project is only accepted if its internal rate of return is greater than the discount rate. If the internal rate of return is less than the discount rate, it means that the project is not generating sufficient return to compensate for the time value of money, and it will not be accepted.

In Which of the Following Situations Will a Project Never