Accept-Reject Decision Homework Help

Accept-Reject Decision 

The use or the IRR, as a criterion to accept capital investment decisions, involves a comparison of the actual IRR with the required rate of return- also known as the cut-off rate or hurdle rate. TIlt: project would qualify to be accepted if the IRR (r) exceeds the cut-off rate (k). I(the IRR and the required rare or return are equal, the- firm is indifferent as to whether to accept or reject the project

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Posted by: andy

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