exam questions

Exam IIA-CIA-Part3 All Questions

View all questions & answers for the IIA-CIA-Part3 exam

Exam IIA-CIA-Part3 topic 2 question 73 discussion

Actual exam question from IIA's IIA-CIA-Part3
Question #: 73
Topic #: 2
[All IIA-CIA-Part3 Questions]

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?

  • A. Compare to the annual cost of capital.
  • B. Compare to the annual interest rate.
  • C. Compare to the required rate of return
  • D. Compare to the net present value.
Show Suggested Answer Hide Answer
Suggested Answer: D 🗳️

Comments

Chosen Answer:
This is a voting comment (?). It is better to Upvote an existing comment if you don't have anything to add.
Switch to a voting comment New
emtofid
1 month, 2 weeks ago
Selected Answer: C
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.
upvoted 1 times
...
KonradK
6 months ago
Selected Answer: C
C is correct
upvoted 1 times
...
Khets
2 years, 10 months ago
C is correct, the project's internal rate of return is compared to the required rate of return to measure the project's profitability.
upvoted 2 times
...
Steve8Taiwan
2 years, 10 months ago
i also think C is correct
upvoted 2 times
...
Mike12345678
3 years, 5 months ago
C is correct
upvoted 3 times
Tico
3 years ago
Agree with Mike12345678, but can anyone explain the logic?
upvoted 2 times
...
...
Community vote distribution
A (35%)
C (25%)
B (20%)
Other
Most Voted
A voting comment increases the vote count for the chosen answer by one.

Upvoting a comment with a selected answer will also increase the vote count towards that answer by one. So if you see a comment that you already agree with, you can upvote it instead of posting a new comment.

SaveCancel
Loading ...
exam
Someone Bought Contributor Access for:
SY0-701
London, 1 minute ago