The internal rate of return (IRR)indicates the interest rate at which the discounted stream of benefits would just equal the discounted costs; thus _______ internal rates of return indicate ______ investments.?

Question

Quizplus · Accepted Answer

Higher internal rates of return indicate better investments because it means that the discounted stream of benefits is greater than the discounted costs, resulting in a higher return on investment. Lower IRRs indicate worse investments as they do not generate enough returns to cover the costs.

The Internal Rate of Return (IRR)indicates the Interest Rate at Which