Multiple Choice
The internal rate of return may be defined as:
A) the discount rate that makes the NPV cash flows equal to zero.
B) the difference between the market rate of interest and the NPV.
C) the market rate of interest less the risk-free rate.
D) the project acceptance rate set by management.
E) None of the above.
Correct Answer:
Verified
Correct Answer:
Verified
Q2: The IRR rule is said to be
Q25: The payback period rule is a convenient
Q42: The payback period rule:<br>A)discounts cash flows.<br>B)ignores initial
Q56: Modified internal rate of return:<br>A)handles the multiple
Q73: You are considering two independent projects both
Q74: If a project is assigned a required
Q75: Larry's Lanterns is considering a project which
Q76: You are analyzing the following two mutually
Q80: An investment is acceptable if the profitability
Q83: The payback period rule accepts all investment