Internal rate of return
Which is the deciding factor for rejecting or accepting proposed projects while using internal rate of return?
Expert
Every time the internal return rate is equal to or higher than the required return rate, the hurdle rate, the project will be accepted. The project is rejected whenever the internal rate of return small in amount than this required rate of return.
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Good fellow national bank decided to compete with a savings and loan by offering 30 year fixed rate mortgage loans at 8% annual interest. It plans to obtain the money got the loans by selling one year 6% CD to it's depositors. During first year of operation, good fellows sold it's depositors 1,000,0
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