The internal rate of return can be used to compare the profitability of competing projects.

Question

Quizplus · Accepted Answer

The internal rate of return (IRR) is a measure of the profitability of an investment, and it can be used to compare the profitability of different investment projects. When comparing competing projects, the one with the higher IRR is generally considered to be more financially attractive. Therefore, the statement is true.

The Internal Rate of Return Can Be Used to Compare