The internal rate of return for a project can be determined:
A. only if the project's cash flows are constant.
B. by finding the discount rate that yields a zero net present value for the project.
C. by subtracting the company's cost of capital from the project's profitability index.
D. only if the project profitability index is greater than zero.
Answer:B
The internal rate of return for a project can be determined:
A. only if the project's cash flows are constant. B. by finding the discount rate that yields a zero net present value for the project. C. by subtracting the company's cost of capital from the project's profitability index. D. only if the project profitability index is greater than zero.