If the internal rate of return on a project is less than the minimum desired rate of return,the project is not desirable.

Question

Quizplus · Accepted Answer

This is because the internal rate of return is the discount rate at which the present value of cash inflows is equal to the initial investment, and if it is less than the minimum desired rate of return, then the project is not generating enough returns to meet the investor's expectations.

If the Internal Rate of Return on a Project Is