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Exam IIA-CIA-Part3 topic 2 question 73 discussion

Actual exam question from IIA's IIA-CIA-Part3
Question #: 73
Topic #: 2
[All IIA-CIA-Part3 Questions]

A new manager received computations of the internal rate of return regarding his project proposal. What should the manager compare the computation results to in order to determine whether the project is potentially acceptable?

  • A. Compare to the annual cost of capital.
  • B. Compare to the annual interest rate.
  • C. Compare to the required rate of return
  • D. Compare to the net present value.
Show Suggested Answer Hide Answer
Suggested Answer: D 🗳️
by Mike12345678 at April 8, 2021, 6:33 p.m.

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KonradK
1 month, 3 weeks ago
Selected Answer: C
C is correct
upvoted 1 times
...
Khets
2 years, 5 months ago
C is correct, the project's internal rate of return is compared to the required rate of return to measure the project's profitability.
upvoted 2 times
...
Steve8Taiwan
2 years, 5 months ago
i also think C is correct
upvoted 2 times
...
Mike12345678
3 years ago
C is correct
upvoted 3 times
Tico
2 years, 8 months ago
Agree with Mike12345678, but can anyone explain the logic?
upvoted 2 times
...
...

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C (25%)
B (20%)
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