When Evaluating Projects Using Internal Rate of Return

Multiple Choice

When evaluating projects using internal rate of return,

A) projects having higher early-year cash flows tend to be preferred at higher discount rates.
B) projects having higher early-year cash flows tend to be preferred at lower discount rates.
C) the discount rate and magnitude of cash flows do not affect internal rate of return.
D) projects having lower early-year cash flows tend to be preferred at higher discount rates.