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The Internal Rate of Return (IRR) for a Project Can

Question 58

Multiple Choice

The internal rate of return (IRR) for a project can be determined


A) If the IRR is greater than the firm's cost of capital.
B) Only if the project's cash flows are constant.
C) By finding the discount rate that yields a net present value (NPV) of zero for the project.
D) By subtracting the firm's cost of capital from the project's profitability index.
E) Only if the project's profitability index is greater than one.

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