Busıness Fınance Iı Deneme Sınavı Sorusu #1033500

Which of the following projects does internal rate of return technique approve if it is mutually exclusive?


The project that provides the highest IRR 

The project that provides the lowest IRR 

The project that provides IRR greater than the expected rate of return

The project that provides IRR smaller than the expected rate of return 

The project that provides IRR equal to the maximum rate of return


Yanıt Açıklaması:

According to internal rate of return technique, if a project is mutually exclusive, the project that provides the highest IRR (that is greater than the expected rate of return (discount rate used in NPV technique)) is approved. The correct answer is A.

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