When Evaluating Projects Using Internal Rate of Return

Multiple Choice

When evaluating projects using internal rate of return,

A) projects having lower early-year cash flows tend to be preferred at higher discount rates.
B) projects having higher early-year cash flows tend to be preferred at higher discount rates.
C) projects having higher early-year cash flows tend to be preferred at lower discount rates.
D) the discount rate and magnitude of cash flows do not affect internal rate of return.