The Internal Rate of Return of a Capital Investment

Multiple Choice

The internal rate of return of a capital investment

A) Changes when the cost of capital changes.
B) Is equal to the annual net cash flows divided by one half of the project's cost when the cash flows are an annuity.
C) Must exceed the cost of capital in order for the firm to accept the investment.
D) Is similar to the yield to maturity on a bond.
E) Answers c and d are correct.