The internal rate of return rule can result in the wrong decision if: a. the pro

Question

The internal rate of return rule can result in the wrong decision if:

a. the projects being compared are independent.

the projects being compared have normal cash flows.

c. the projects being compared are independent and have normal cash flows.

the projects being compared are mutually exclusive.

a. the projects being compared are independent.

the projects being compared have normal cash flows.

c. the projects being compared are independent and have normal cash flows.

the projects being compared are mutually exclusive.

Explanation / Answer

The internal rate of return rule can result in the wrong decision if: the projects being compared are mutually exclusive.

All other options are incorrect.

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