Which of the following rates is most commonly compared to the internal rate of return to evaluate

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Which of the following rates is most commonly compared to the internal rate of return to evaluate whether to make an investment?
a. Short-term rate on U.S. Treasury bonds
b. Prime rate of interest
c. Weighted average cost of capital
d.
Long-term rate on U.S. Treasury bonds
Internal Rate of Return
Internal Rate of Return of IRR is a capital budgeting tool that is used to assess the viability of an investment opportunity. IRR is the true rate of return that a project is capable of generating. It is a metric that tells you about the investment...
Cost Of Capital
Cost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of...
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Cornerstones of Cost Management

ISBN: 978-1285751788

3rd edition

Authors: Don R. Hansen, Maryanne M. Mowen

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