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Which of the Following Is the Appropriate IRR Rule

Question 1

Multiple Choice

Which of the following is the appropriate IRR rule?


A) When there are multiple IRRs,select the one with the smallest IRR.
B) When there are multiple IRRs,select the one with the largest IRR.
C) In the absence of constraints,a project with a delayed cash flow stream should be adopted only if its IRR is less than the hurdle rate.
D) In the absence of constraints,a project with an early cash flow stream should be adopted only if the hurdle rate exceeds the IRR of the project.

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