In Internal Rate of Return IRR technique for capital budgeting evaluation investment should be accep...........

Finance( Revenue Account ) Others

In Internal Rate of Return (IRR) technique for capital budgeting evaluation, investment should be accepted only when cost of capital is ___ the calculated IRR.

Less than

Greater than

Equal to

Any of the above

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Explanation:

Internal Rate of Return is that discounting rate at which the sum total of present value of cash inflows is equal to initial investment i.e. NPV is zero and Profitability Index is 1. If the cost of capital of the project is less than IRR, the project is worth acceptable.