For Investment Projects,the Internal Rate of Return (IRR)

Multiple Choice

For investment projects,the internal rate of return (IRR) :

A) rule indicates acceptance of an investment when the IRR is less than the discount rate.
B) is the rate generated solely by the cash flows of the investment.
C) is used primarily to rank projects of varying sizes.
D) is the rate that causes the net present value of a project to equal the project's initial cost.
E) can effectively be used to compare all types and sizes of mutually exclusive projects.