The higher the internal rate of return, the more attractive the project is from a financial standpoint.

Name: The higher the internal rate of return, the more attractive the project is from a financial standpoint.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The internal rate of return (IRR) is the discount rate that makes the net present value (NPV) of a project equal to zero. A higher IRR indicates that the project is generating more cash flow and is therefore more attractive from a financial standpoint.

The Higher the Internal Rate of Return, the More Attractive