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What is the decision rule for accepting or rejecting proposed projects while using internal rate of return?
While the internal rate of return is greater or equal as compare to required rate of return, the hurdle rate, the project is accepted. While the internal rate of return is less as compared to this required rate of return, the project is rejected.
Question 1: The various criteria for evaluating a revenue measure or system are: ? Yield ? Political expediency ? Consistency with economic and social goals ?
Calculate the expected rate of return and risk of return
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