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Which One of the Following Defines the Internal Rate of Return

Question 44

Multiple Choice

Which one of the following defines the internal rate of return for a project?


A) a discount rate that creates a zero cash flow from assets
B) a discount rate which results in a zero net present value for the project
C) a discount rate which results in a net present value equal to the project's initial cost
D) a rate of return required by the project's investors
E) the project's current market rate of return

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