Which of the following is true regarding the internal rate of return for a project?

Question

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All of the statements mentioned are true regarding the internal rate of return for a project. Option A indicates that if the internal rate of return is less than the required rate of return, the project will not be profitable enough to cover the required return and hence will be rejected. Option B indicates that if the internal rate of return is equal to the required rate of return, then the net present value of the project will be zero. Option C indicates that if the internal rate of return is more than the required rate of return, the project will generate a return that is greater than the cost of capital and hence will be accepted. Option D indicates that managers may believe that the IRR is the compounded rate of return earned by the initial investment, which is a common misconception.

Which of the Following Is True Regarding the Internal Rate