The machine's IRR is
A) less than 0.
B) greater than 12 percent.
C) less than 12 percent.
D) equal to 12 percent.

Question

Quizplus · Accepted Answer

The Internal Rate of Return (IRR) is a financial metric used to evaluate the profitability of an investment. If an investment's IRR is greater than the required rate of return (in this case, 12 percent), it means the investment is expected to generate returns higher than the benchmark, making it a desirable option. Therefore, if the machine's IRR is stated to be greater than 12 percent, it indicates that the machine is expected to yield returns higher than 12 percent, making it a profitable investment.

The Machine's IRR Is