Question

g Which one best completes the following sentence: According to the IRR rule, an investment should be ______ if the IRR is ______ the required rate of return. Group of answer choices Rejected; greater than Accepted; less than Accepted; greater than Accepted; equal to

Answer 1

Accepted; greater than

Step-by-step explanation:

Internal rate of return is a way to determine if a project is worth pursuing. It is a series of future cash flows that an investment is expected to return to the investors.

The required rate of return is the minimum amount that the investor will accept from a project.

The IRR rule requires that the Internal rate of return be higher than the required rate of return