When evaluating capital investment projects,if the internal rate of return is less than the required rate of return,the project will be rejected.

Question

Quizplus · Accepted Answer

This is because the internal rate of return (IRR) represents the project's estimated rate of return, whereas the required rate of return (RRR) is the minimum return required by investors. If the IRR is less than the RRR, it means that the project is not generating enough returns to meet the investors' expectations and is, therefore, not an attractive investment option.

When Evaluating Capital Investment Projects,if the Internal Rate of Return