A project should be accepted if its internal rate of return exceeds _____?
کسی پروجیکٹ کو قبول کیا جانا چاہیے اگر اس کی داخلی شرح منافع _____ سے زیادہ ہو؟
- The rate of return on a government bond
- Zero
- The rate the company pays on borrowed funds
- The company's required rate of return
Explanation
A project should be accepted if its internal rate of return (IRR) exceeds the company's required rate of return.
This indicates that the project is expected to generate returns higher than the company's minimum acceptable return, making it a potentially profitable investment.