When Using the Internal Rate of Return (IRR)investment Rule,we Compare

Multiple Choice

When using the internal rate of return (IRR) investment rule,we compare:

A) the average return on the investment opportunity to returns on all other investment opportunities in the market.
B) the average return on the investment opportunity to returns on other alternatives in the market with equivalent risk and maturity.
C) the NPV of the investment opportunity to the average return on the investment opportunity.
D) the average return on the investment opportunity to the risk-free rate of return.