Internal Rate of Return Method Assignment

The internal rate of return (IRR) is a capital budgeting project’s expected return. Which of the following statements about the IRR method is true?

A. Because of the uncertainty connected with risky cash flows, the realized return will almost surely be different from the IRR.

B. Decision rule for IRR: undertake the capital budgeting project only if the IRR equals r, the project’s cost of capital.

C. If the cost of capital (required return) equals the IRR (expected return), the NPV is greater than zero.

D. All of these

Whenever projects are both independent and conventional, then the IRR and NPV methods agree. Which of the following statements is true?

A. A conventional project is a project with an initial cash outflow that is followed by one or more expected future cash inflows.

B. A mutually exclusive project is one that can be chosen independently of other projects.

C. When undertaking one project prevents investing in another project, and vice versa, the projects are said to have a positive payback.

D. All of these. Get Finance homework help today