Which one of the following statements related to the internal rate of return (IR

Question

Which one of the following statements related to the internal rate of return (IRR) is correct? Question 1 options: A) The IRR yields the same accept and reject decisions as the net present value method given mutually exclusive projects. B) A project with an IRR equal to the required return would reduce the value of a firm if accepted. C) The IRR is equal to the required return when the net present value is equal to zero. D) Financing type projects should be accepted if the IRR exceeds the required return. E) The average accounting return is a better method of analysis than the IRR from a financial point of view.

Explanation / Answer

I believe the answer is C I don't think it's B because when IRR = required return your NPV will be 0 so there wouldn't be a change in the value of the firm.

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