A new manager received computations of the internal rate of return regarding his project proposal. What should the manager compare the computation results to in order to determine whether the project is potentially acceptable?
To determine if a project is potentially acceptable, the internal rate of return (IRR) should be compared to the required rate of return (also known as the hurdle rate or target rate). If the IRR meets or exceeds the required rate of return, the project is considered acceptable because it is expected to generate returns that justify the investment.
Agree with Mike12345678, but can anyone explain the logic?
upvoted 2 times
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emtofid
1 month, 2 weeks agoKonradK
6 months agoKhets
2 years, 10 months agoSteve8Taiwan
2 years, 10 months agoMike12345678
3 years, 5 months agoTico
3 years ago