The required rate of return from a project is 10% and the internal rate of return of the project is 12%, hence the project should be
Question
The required rate of return from a project is 10% and the internal rate of return of the project is 12%, hence the project should be
Solution
Accepted. The Internal Rate of Return (IRR) is greater than the Required Rate of Return (RRR), which means the project is expected to yield a return higher than the minimum acceptable return. Therefore, it would be a good investment.
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