Ignoring income taxes, which of the following statements regarding the internal rate of return is correct?
A) The internal rate of return is sensitive to changes in the discount rate.
B) The internal rate of return is not sensitive to changes in salvage value.
C) If the internal rate of return exceeds the required rate of return, the investment should be considered.
D) The internal rate of return is sensitive to a change in depreciation methods.
Correct Answer:
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