If the IRR is greater than the required rate of return, the: - 4556

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If the IRR is greater than the required rate of return, the:

a.present value of all the cash inflows will be greater than the initial outlay.

b.payback will be less than the life of the investment.

c.project should be rejected.

d.both a and b.

IRR (internal rate of return) is a technique that determines the rate, which will equate all cash inflows with outflows. 

 
Solution Description

If the IRR is greater than the required rate of return, the:

          a.   present value of all the cash inflows will be greater th