The IRR decision rule can be reversed because:
A) the NPV rule is not the same as the IRR.
B) the IRR iis based on a mutually exclusive investment.
C) instead of an investment project it is a financing project.
D) the IRR is greater than 100%.

Question

Quizplus · Accepted Answer

The IRR decision rule can be reversed in the case of a financing project, where a lower IRR is preferred because it indicates a lower cost of financing.

The IRR Decision Rule Can Be Reversed Because