Question
As the number of investments made by a firm increases, its internal rate of return
Answer: Option D
Answer: (d)
Internal rates of return are commonly used to evaluate the desirability of investments or projects. The higher a project's internal rate of return, the more desirable it is to undertake the project.
A firm (or individual), in theory, undertakes all projects or investments available with IRRs that exceed the cost of capital.
As the number of investments increases, its internal rate of return is greater than an established minimum acceptable rate of return or cost of capital.
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Answer: (d)
Internal rates of return are commonly used to evaluate the desirability of investments or projects. The higher a project's internal rate of return, the more desirable it is to undertake the project.
A firm (or individual), in theory, undertakes all projects or investments available with IRRs that exceed the cost of capital.
As the number of investments increases, its internal rate of return is greater than an established minimum acceptable rate of return or cost of capital.
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