Question: When using the internal rate of return method to evaluate capital spending with borrowed funds, the internal rate of return should be return should be

When using the internal rate of return method to evaluate capital spending with borrowed funds, the internal rate of return should be return should be higher than the markup percentage on merchandise if the business is a merchandising business. higher than the rate of return on net sales. higher than the gross margin percentage if the business is a merchandising business. higher than the interest rate on the loan

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