Question

Theoretically, a company comparing multiple projects with similar investment requirements and durations would select projects with __________.

Answer 1

Answer:

D.)

the highest IRR

Explanation:

Here are the options to the question :

A.)

the IRR that is closest to zero

B.)

a negative IRR

C.)

the lowest IRR

D.)

the highest IRR

IRR is a capital budgeting method.

Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested

The higher the IRR, the more profitable the project is.

In the absence of certain restrictions, the project with the highest IRR should be chosen