Using internal rate of return, a conventional project should be accepted if the internal rate of return is:
A)equal to the discount rate.
B)greater than the discount rate.
C)less than the discount rate.
D)negative.
E)positive.

Question

Quizplus · Accepted Answer

A project's internal rate of return should be greater than the discount rate to be accepted as it indicates that the project's returns are sufficient to exceed the cost of capital.

Using Internal Rate of Return, a Conventional Project Should Be