The IRR rule states that a firm should accept any project with an internal rate of return greater than or equal to a pre-specified hurdle rate.

Question

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The IRR rule, also known as the internal rate of return rule, states that a firm should accept any project that has an internal rate of return (IRR) greater than or equal to the firm's hurdle rate or cost of capital. This rule helps the firm in identifying projects that will generate the required rate of return for the investors and create value for the firm. So, option A is true.

The IRR Rule States That a Firm Should Accept Any