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

Question

Quizplus · Accepted Answer

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

The Machine's IRR Is