The internal rate of return of an investment is independent of the firm's cost of capital.

Name: The internal rate of return of an investment is independent of the firm's cost of capital.
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Question

The internal rate of return of an investment is independent of the firm's cost of capital.​

Quizplus · Accepted Answer

The internal rate of return (IRR) is a metric used to evaluate the profitability of potential investments. It is calculated based on the cash flows generated by the investment itself, without considering the firm's cost of capital.

The Internal Rate of Return of an Investment Is Independent