Question: Select the incorrect statement concerning the internal rate of return (IRR) method of evaluating capital projects. The internal rate of return is that rate that

Select the incorrect statement concerning the internal rate of return (IRR) method of evaluating capital projects.

The internal rate of return is that rate that makes the present value of the initial outlay equal to zero.

The higher the IRR the better.

A project whose IRR is less than the cost of capital should be rejected.

If a project has a positive net present value then its IRR will exceed the hurdle rate.

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