The firm should engage in the project that has an IRR lower than the risk-adjusted discount rate.

Name: The firm should engage in the project that has an IRR lower than the risk-adjusted discount rate.
Brand: Quizplus
Rating: 4.9 (51 reviews)

Question

Quizplus · Accepted Answer

The firm should engage in projects where the Internal Rate of Return (IRR) is higher than the risk-adjusted discount rate, as this indicates the project is expected to generate returns above the firm's cost of capital, adjusting for risk.

The Firm Should Engage in the Project That Has an IRR