The IRR decision criterion is to accept a project if the IRR exceeds the desired or required return rate and to reject the project if the IRR is less than the desired or required rate of return.

Question

Quizplus · Accepted Answer

This statement accurately describes the IRR decision criterion. The IRR is a measure of the project's internal rate of return, and it is used to assess whether the project is expected to generate returns that meet or exceed the required rate of return. If the IRR is greater than the required rate of return, the project is considered a good investment and should be accepted. If the IRR is lower than the required rate of return, the project should be rejected as it is not expected to generate sufficient returns to justify the investment.

The IRR Decision Criterion Is to Accept a Project If