When a Project Has Multiple Internal Rates of Return, the Analyst

Multiple Choice

When a project has multiple internal rates of return, the analyst should ____.

A) choose the highest rate to compare with the firm's cost of capital
B) choose the lowest rate to compare with the firm's cost of capital
C) choose the rate that seems most "reasonable," given the project's cash flows, to compare with the firm's cost of capital
D) compute the project's net present value and accept the project if its NPV is greater than $0