Usually an investment will be profitable if:
A)The internal rate of return is less than the cost of borrowing
B)The cost of borrowing is equal to the internal rate of return
C)It is financed with retained earnings
D)The cost of borrowing is less than the internal rate of return

Question

Quizplus · Accepted Answer

If the cost of borrowing is less than the internal rate of return, the investment is generating more profit than the cost of borrowing. This means that the investment is profitable and could provide a positive return on investment.

Usually an Investment Will Be Profitable If