A Company That Is Using the Internal Rate of Return

Multiple Choice

A company that is using the internal rate of return (IRR) to evaluate projects should accept a project if the IRR:

A) is greater than the project's net present value.
B) equates the present value of the project's cash inflows with the present value of the project's cash outflows.
C) is greater than zero.
D) is greater than the hurdle rate.
E) is less than the firm's cost of investment capital.