Multiple Choice
Which of the following best describes the internal rate of return?
A) discount rate at which the cost of the investment equals the present value of the net cash inflows from the investment
B) discount rate that is used to evaluate funds borrowed from a lender for profitability
C) the ratio of average annual income to average amount invested
D) the rate at which the profitability of an investment increases
Correct Answer:
Verified
Correct Answer:
Verified
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