Answered: The relationship between IRR and the…

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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Question

what is the correct response?

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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