The relationship between IRR and the discount rate of a project is direct linear inverse none (there is no relationship) non-linear

Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter12: Capital Investment Decisions
Section: Chapter Questions
Problem 10DQ: What is the role that the required rate of return plays in the NPV model? In the IRR model?
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The relationship between IRR and the discount rate of a project is
direct
linear
inverse
none (there is no relationship)
non-linear
Transcribed Image Text:The relationship between IRR and the discount rate of a project is direct linear inverse none (there is no relationship) non-linear
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