IRR Flashcards
1
Q
The IRR
A
Reflects the discount rate necessary to make the present value of the future after tax flows equal the investment outlay.
2
Q
Invest if
A
IRR > r
3
Q
Do not invest if the
A
IRR < r
The IRR
Reflects the discount rate necessary to make the present value of the future after tax flows equal the investment outlay.
Invest if
IRR > r
Do not invest if the
IRR < r