微信扫一扫
实时资讯全掌握
A proposed investment is not expected to have any salvage value at the end of its 5-year life. Because of realistic depreciation practices, the net carrying amount and the salvage value are equal at the end of each year. For present value purposes, cash flows are assumed to occur at the end of each year. The company uses a 12% after-tax target rate of return.  Which statement about the internal rate of return of the investment is true?A. The IRR is exactly 12%. B. The IRR is over 12%. C. The IRR is under 12%. D. No information about the IRR can be determined. |