Question

Which is true about IRR? i. It is used in capital

budgeting measuring the profitability of potential investments ii. It is that discount rate which makes the net present value (NPV) of all cash flows equal to zero iii. IRR cannot be calculated analytically, and must instead be calculated either through trial-and-error or using software programmed to calculate IRR iv. Higher the IRR, more desirable the project to undertake

A Only i and ii

B Only i, ii and iv

C Only ii, iii and iv

D Only i, ii and iii

E All of the above

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