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

If the internal rate of return (IRR) of a capital investment project is less than the required rate of return (RRR), it implies that the project is not generating returns at the desired or acceptable level. Hence, the project should be rejected or not undertaken.

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