Question

Which of the following statements concerning the internal rate of return is false?

a. The internal rate of return for a capital budgeting project is the same for all firms regardless of their cost of capital.

b. A project is acceptable long as the project's internal rate of return is greater than the hurdle rate for the project.

c. The internal rate of return is dependent on the timing of the cash flows.

d. A project with a positive internal rate of return will always increase the value of the firm if the project is accepted.

e. You do not need to know the required rate of return to solve for the internal rate of return.

Answer

This answer is hidden. It contains 1 characters.