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The Internal Rate of Return on an Asset Can Be

Question 8

Multiple Choice

The internal rate of return on an asset can be calculated:


A) if the return is greater than the hurdle rate.
B) if the asset's cash flows are identical to the future value of a series of cash flows.
C) if the future value of a series of cash flows can be arrived at by the annuity accumulation factor.
D) by finding a discount rate that yields a zero net present value.
E) by finding a discount rate that yields a positive net present value.

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