Which of the following statement(s) is(are) true for the application of the IRR in a capital budgeting decision?

A) The IRR must exceed the cost of capital to warrant undertaking the project.
B) The project's IRR is dependent on the project's cost of capital.
C) The IRR is similar to a bond's yield in that both generate a zero NPV.
D) a and c

Capital Budgeting Decision

The process by which a business determines whether projects such as investments in equipment or new products are worth pursuing.

Cost of Capital

The rate of return that a company must earn on its investment projects to maintain its market value and attract funds.

Bond's Yield

The return an investor realizes on a bond, calculated as the interest or dividends received divided by the price of the bond.