The Internal Rate of Return Is

Multiple Choice

The internal rate of return is:

A) more reliable than net present value whenever you are considering mutually exclusive projects.
B) equivalent to the discount rate that makes the net present value equal to 1.0.
C) computed using a project's cash flows as the only source of inputs.
D) dependent on the interest rates offered in the marketplace.
E) a better methodology than net present value when dealing with unconventional cash flows.