A project should be accepted when the:
A) Profitability index is less than 1.0.
B) AAR is less than the targeted AAR.
C) Net present value is negative.
D) IRR exceeds the required rate.
E) Payback period is greater than the prescribed number of years.

Question

Quizplus · Accepted Answer

The IRR (Internal Rate of Return) exceeding the required rate indicates that the project's return is higher than the minimum threshold set by the company, making it a financially viable and acceptable project.

A Project Should Be Accepted When The