The internal rate of return of a capital investment
A) Changes when the required rate of return changes.
B) Is equal to the annual net cash flows divided by one half of the project's cost when the cash flows are an annuity.
C) Must exceed the required rate of return in order for the firm to accept the investment.
D) Is similar to the yield to maturity on a bond.
E) Answers c and d are both correct.
Correct Answer:
Verified
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