What is the quantitative decision rule for the internal rate of return method?

A) Accept investments whose return on investment exceeds the accounting rate of return.
B) Accept investments whose weighted average cost of capital exceeds the return on investment.
C) Accept investments whose required rate of return exceeds the internal rate of return.
D) Accept investments whose internal rate of return exceeds the required rate of return.

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Bryce Gorup · Accepted Answer

Final Answer : D, Explanation :  The quantitative decision rule for the internal rate of return method is to accept investments whose internal rate of return exceeds the required rate of return. This means that the project is expected to generate a return that is greater than the minimum rate of return required by the company or investors. Therefore, option D is the best choice.

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