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Part $1$

When using the internal rate of return$($IRR$)$ investment$$ rule, we$$ compare:

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Part $1$

A$.$

the average return on the investment opportunity to returns on all other investment opportunities in the market.

B$.$

the average return on the investment opportunity to returns on other alternatives in the market with equivalent risk and maturity.

C$.$

the NPV of the investment opportunity to the average return on the investment opportunity.

D$.$

the average return on the investment opportunity to the

riskminus$$free

rate of return.